Home > Avid Law Center > Percent of Underwater Mortgaged Homes Rises, Again.

Percent of Underwater Mortgaged Homes Rises, Again.

Underwater Mortgages on the Rise

According to a new report by real estate website, Zillow, 28.6 percent of homeowners with mortgages owe more on their loans than their homes are worth. According to msnbc.com’s The Bottom Line, that’s up from 26.8 percent in the second quarter.

The Bottom Line reports underwater homes are often considered risks for future foreclosure, since owners could have trouble refinancing or selling and may opt for a foreclosure via “strategic default” if they feel they will never regain their lost equity. Stalls the housing market because homeowners can’t sell and feel stuck.

While most borrowers in this situation feel stuck, there are options available to homeowners before their situation worsens and foreclosure is eminent.  For example, many homeowners are seeking a principal reduction through a loan modification.  If you find you do not meet the qualifications to refinance, speak with a real estate expert who can advise you on other options and tell you if you are a good candidate for a loan modification.

For more information on underwater mortgages check out this video.

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