Recent data indicates that more than 20 percent of homeowners have underwater mortgages. That means one in five people wouldn’t benefit from mortgage loan modification even if they could get it. The number of underwater mortgages is slowly decreasing, though. That aside, some areas are still in trouble as major metropolitan areas have rising numbers of foreclosures.
One fifth of all homes underwater
According to CNN Money, just more than 20 percent of homeowners owed more than their homes are worth. That figure is at 21.5 percent, down from 23.3 percent, indicating some homes gained enough value to break the surface. Even though negative equity is decreasing nationally, 20 out of every 100 homeowners wouldn’t qualify for or benefit from mortgage loan modification. Less equity means less likelihood of debt relief, and some people might be better off if they get personal loans and get out of their toxic mortgages.
Foreclosures and values climb
Real estate prices are starting to improve. Homes, of course, will always be largest purchases most Americans ever make, but the cost of homes is improving. Large urban areas saw the most improvement. That said, about 75 percent of major cities saw more foreclosures. Las Vegas is still ruined regarding real estate. Unemployment is more than than 14 percent there, and 74 percent of homes are underwater in Sin City. One in 15 homes there is in foreclosure.
Very slow but steady
The improvements are almost negligible. Unemployment is down a little, and maybe a few people aren’t as bad off as they used to be. While improvement is a always a good sign, the economic recovery is promising to be a long and arduous one.
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