Last month, homeowners' equity reached the highest level since the recession began. But the crisis isn't over, according to a recent report from the Haas Institute for a Fair and Inclusive Society at the University of California (Berkeley). About 9.8 million homes are still underwater, the report said (HUD says the number is 6.28 million).
Which states have underwater mortgages?
How many zip codes have underwater mortgages?
How many people are underwater on their mortgage?
Underwater homes are declining in most cities ATTOM Data said that 3.2 million homes — one in 18 mortgaged homes — were considered seriously underwater in the fourth quarter. That represented 5.4% of all U.S. properties with a mortgage, down from a 6.4% underwater rate a year earlier.
What does it mean if a homeowner is underwater?
An underwater mortgage, sometimes called an upside-down mortgage, is a home loan with a higher principal than the home is worth. This happens when property values fall but you still need to repay the original balance of your loan. Mortgages aren't the only loans that can end up underwater.
How can I stop being underwater in my house?
Probably the best step you can take as a homeowner to prevent an underwater mortgage is to simply stay on top of your housing costs. As long as you're continually building equity in your home, you can minimize the risk of an upside-down loan.
Are there houses under water?
A decade later, more than 9% of homeowners are still underwater. That's a lot better than it was years ago, but 9% of homeowners means we're talking about 4.5 million Americans.
What happens if you stop paying your mortgage and walk away?
Don't take defaulting on your mortgage lightly. If you live in a recourse state and you stop making mortgage payments, the lender will foreclose on your home. If the proceeds from the foreclosure auction aren't enough to pay off your debt, the mortgage lender may then sue you for the balance.
What happens if your house is worth more than your mortgage?
If you owe $150,000 on your mortgage loan and your home is worth $200,000, you have $50,000 of equity in your home. Your equity can increase in two ways. As you pay down your mortgage, the amount of equity in your home will rise. Your equity will also increase if the value of your home jumps.
How long can you not pay your mortgage?
Once you're 120 days behind on your payments, the lender can start the foreclosure process if you haven't submitted a complete mortgage assistance application. Loan modification programs help distressed borrowers avoid foreclosure by permanently changing the terms of a loan.
Can't afford mortgage anymore what can I do?
Some options that your servicer might make available include:Refinance.Get a loan modification.Work out a repayment plan.Get forbearance.Short-sell your home.Give your home back to your lender through a “deed-in-lieu of foreclosure”
What's an upside-down mortgage?
An underwater or upside-down mortgage occurs when the mortgage amount is higher than the value of the home. These instances are not common, but can occur when home values decline.
Is there a lost city in the ocean?
Geologists know that there are two kinds of "lost cities" underwater: those that were made by humans, and those that weren't. The latter turns out to be the case for one such city, discovered by tourists diving off the Greek island of Zakynthos in 2014.
What city sank beneath the ocean?
1. Pavlopetri, Greece. In 1967, Nic Flemming, a researcher with the University of Southampton, came across remains sitting several feet below the water off the coast of southern Greece. The finds would pan out to be the oldest submerged city yet found.
Why don't we build cities underwater?
First and foremost, it appears that humans should not build colonies deeper than 1,000 feet (300 meters), and ideally at much shallower depths. This is because the pressure at these depths would not only require very thick walls but would also require lengthy periods of decompression when returning to the surface.
How much is a house underwater?
Equity on a home is associated with the value of the home versus the balance paid. A borrower with a $250,000 mortgage that sees their home value decrease to $225,000 is considered to have an underwater mortgage.
How do people build under water?
Today, underwater tunnels are often created with humongous tunnel-boring machines (TBMs) — sometimes called moles. These machines cost millions of dollars, but they can create large tunnels in a very short time. A circular plate with disk cutters rotates to cut through rock as the machine inches forward slowly.
How are underwater homes built?
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Can you buy an underwater house?
A short sale is one of the most convenient ways of acquiring underwater properties. In this case, the homeowner sells the property for an amount that is lower than what he owes on the mortgage. The sale can only go through if the lender approves the offer.
Which states have underwater mortgages?
The highest share of underwater mortgages could be found in the South and Midwest, led by Louisiana (16.5% seriously underwater); Mississippi (15.8%); West Virginia (14.2%); Iowa (14.0%); and Arkansas (13.1%).
How many zip codes have underwater mortgages?
Among 8,213 U.S. zip codes with at least 2,000 properties with mortgages, there were 160 zip codes where more than a quarter of all properties with a mortgage were seriously underwater. The largest number of those zip codes were in the Cleveland, St. Louis, Philadelphia, Chicago and Milwaukee metropolitan statistical areas.
What happens to underwater homeowners?
Significantly underwater homeowners make monthly mortgage payments greater than the rental value of the property. That money is sucked into their black-hole asset, and removed from the economy.
Why did underwater homes decrease in 2012?
Up until the end of 2012, any decrease in underwater homes was mainly due to short sales and foreclosure sales. However, the price jump experienced in 2013, particularly in low-tier homes, is credited with pulling many homes into positive equity, accelerating the disappearance of underwater homeowners. This price increase has leveled out, as it was ...
How much equity does a home in California have in 2020?
This price increase has leveled out, as it was due primarily to speculator activity, which has substantially slowed down. As of Q3 2020, the average California homeowner gained a significant $34,000 in equity over the previous 12 months, an increase from a year earlier when the average home gained just $8,000 in equity over the course of a year.
When will the underwater mortgage moratorium end?
These numbers will grow when the foreclosure moratorium expires, currently scheduled to occur in March 2021, though it has been extended several times over the past year.
Is California underwater in 2021?
Going into 2021, California has the fewest underwater properties since the Millennium Boom. However, 2020’s rapid home value increase coincided directly with the drop in interest rates, set in place by the Federal Reserve (the Fed) to boost borrowing during the 2020 recession. Now that interest rates have bottomed and jobs remain far, ...
Which states have underwater mortgages?
The highest share of underwater mortgages could be found in the South and Midwest, led by Louisiana (16.5% seriously underwater); Mississippi (15.8%); West Virginia (14.2%); Iowa (14.0%); and Arkansas (13.1%).
How many zip codes have underwater mortgages?
Among 8,213 U.S. zip codes with at least 2,000 properties with mortgages, there were 160 zip codes where more than a quarter of all properties with a mortgage were seriously underwater. The largest number of those zip codes were in the Cleveland, St. Louis, Philadelphia, Chicago and Milwaukee metropolitan statistical areas.
