Does Negative Equity Really Matter?
Just because you owe more on your mortgage than your home is worth doesn't necessarily mean that you are no longer able to afford your mortgage.
For many who bought their homes during the housing boom, little has changed for them financially other than what the appraiser has determined on paper.
Does Negative Equity Really Matter?
At the end of the 3rd Quarter, just over 22% of homeowners were "underwater"... what has changed for these homeowners?...their attitude has changed.
Does Negative Equity Really Matter?
It is incredibly discouraging to see the value of the biggest purchase in your life decreasing due to no fault of your own.
Homeowners with negative equity are most likely going to have a different attitude than homeowners with equity in their homes. For most "underwater" homeowners, they will not see their equity return for many years.
Several of these homeowners will have the "attitude of a renter" ... which means they are not likely to invest in home improvements.
Does Negative Equity Really Matter? ... Well of course it does
The best way to bring back the positive attitude of "underwater" homeowners is to reduce their mortgage principal to the Current Market Value.
Peace in the Neighborhood is possible with Mortgage Note Reduction
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