20 percent of homeowners have underwater mortgages

A recent investigation suggests that just more than 20 percent of American homeowners are underwater on their mortgage loans. That means that one in five individuals who own their homes would be no better off with mortgage loan modification, even if they could get it. The number of underwater mortgage loans is slowly decreasing though. However, some areas are worse off than others, as large metropolitan areas are still experiencing greater numbers of foreclosures.

One fifth of all homes underwater

Just over 20 percent of people have homes that are worth less than they still owe to them, according to CNN Money. However, the 21.5 percent who are currently underwater is down from 23.3 percent from the previous quarter, which means some homes gained more than a payday loans worth. That means the amount of national negative equity is decreasing. That said, one in five individuals still probably won’t get offered mortgage loan modification, as it would do them no good. Less equity means less likelihood of debt relief, and some can be better off if they get a personal bank loan and get out of their toxic mortgage.

As values climb so do foreclosures

Real estate values are starting to climb in some areas. Though the price was at bottom but improving, one can never expect to finance a house with a money advance. Large urban areas saw one of the most improvement. However, the number of foreclosures increased for 75 percent of all major cities despite home values creeping up. Las Vegas, Nev., is nevertheless the worst city in America for real estate. Sin City has 14 percent unemployment, and almost three quarters of homes there have underwater mortgages. One in 15 homes there are in foreclosure.

The economy wants to one day have even modest recovery

The improvements are almost negligible. Unemployment is down a little, and maybe a few individuals aren’t as bad off as they used to be. What recovery has taken place is doing so at a very slow pace.

Additional reading

CNN

money.cnn.com/2010/08/09/real_estate/fewer_underwater_borrowers/index.htm

money.cnn.com/2010/07/29/real_estate/new_face_of_foreclosure/index.htm