Should We Care?

By
Services for Real Estate Pros

underwater homes @ mortgagereduction411.comShould We Care?....

.....that there are over 11 million "Underwater Homeowners"?

Approximately 23% of homeowners with a mortgage presently owe more than their home's value. A total of $750 Billion of negative equity. Close to another 2.5 million homeowners have less than 5% equity...and with home prices continuing to fall, well you know what that means.

Negative equity is concentrated in the hardest hit states: Nevada (65 percent), Arizona (51 percent), Florida (47 percent), Michigan (36 percent) and California (32 percent). The consensus among housing watchers is that home prices will fall another 5 to 10 percent this year before slowly climbing back. That means negative equity will climb approximately another 10%.underwater homes @ mortgagereduction411.com

 

Should we care if these "Underwater Homeowners" continue to make their mortgage payments each month?

 

Negative equity keeps homeowners "prisoners" in their homes...can't sell, can't refi, hard to save... underwater homes @ mortgagereduction411.com

Negative equity will also slow the pace of home sales...can't trade up, forcing lenders to ask for higher down payments...

Negative equity also increases the risk of Strategic Default.

 

Peace in the Neighborhood is possible with Mortgage Note Reduction!

 

 

Comments (4)

Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

MJ - and who will pay for that? And what is wrong with foreclosure? Wan't there a Promissory signed that if you can't pay, your home is taken?

It is not the end of the road. Renting is not end of the road. Why is it so necessary to keep people in the homes that they can't afford?

Mar 09, 2011 03:41 PM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

MJ,

I totally disagree with Jon.  When people bought their homes with no money down and with no education on what a balloon mortgage was,..it was the mortgage brokers and banks that approved the mortgage who sould be at fault.

Now that there are so many short sales, foreclosures and REO's that ruin the value of those paying their mortgage (whether the equity is still there or not), I do not think the system is fair.

My humble opinion is that is the banks would "reset" the mortgage payments to what they were when the homeowner was "qualified", and forget the ballooning, there would be more stability in the real estate market, less foreclosure situations and those who are paying their mortgages on time wouldn't suffer the consequences of low valuation of their homes.

Suggested - hoping to hear others opinions.

Mar 09, 2011 03:53 PM
Roger Radcliff
FREEDOM REALTY - Barksdale AFB, LA
AFB Specialist - Barksdale

Proud to say, my office Never sold one home with an ARM or Interest Only loan.  We call 2006 the year of, "Have a Pulse, Have a House"

Mar 09, 2011 04:57 PM
MJ Anton
Ormond Beach, FL

@ Jon...if you can't afford your home you shouldn't have your home.  I think more of the concern is those who may become "Strategic Defaulters".  Owning definitely provides more stability to families then renting.

@ Karen...where is the responsibility of the underwater who signed off on the mortgage?  We have heard about the "dirtbag" mortgage brokers who only cared about making commissions, the banks who laid off the blame on Wall St., Wall St. who re-packaged the quality loans with the high-risk and sold them off.  I haven't heard much about the actual underwater who gave their stamp of approval

@ Roger...Excellent!!!

Thank you all for taking the time to comment

Mar 10, 2011 04:52 AM