Light at the End of Tunnel for Underwater Loans?
Published On: April 12, 2011 Posted by: TownsRealty
No matter what the media says, the ground reality is, large numbers of people are stuck with mortgages which are more than the present property valuations. Such mortgage loans in financial parlance are termed as underwater loans. Statistics suggest that around 23 percent of homeowners in America are facing the problem of an underwater loan. California based real estate information firm First American CoreLogic states that there are around 10.7 million homes in the U.S. with negative equity. Almost half a million of these borrowers have already defaulted on the payments and have received notices for the same.
The Million Dollar Question.
As if stagnant job market was not enough, homeowners across the country are facing a double whammy in the form of underwater loans, the million dollar question thus arises – how to circumvent this problem? Considering the present state of economy and struggling real estate market, the solution is not that simple as billions of dollars are at stake. Since the money flow is reduced to American populace, nothing can be expected from them in the near future. Thus, the solution needs to come from someone sitting on a higher pedestal.