- Dennis Norman
By: Dennis Norman
It appears short sales are going to be here for a while, presenting opportunites for investors as sellers who are underwater on their mortgages with lenders that realize it are going to look for viable alternatives to foreclosure. Many investors have been actively pursuing short sales for some time now and according to a report issued by First American CoreLogic it sounds like there are plenty more opportunities out there.
According to the CoreLogic report, more than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, are in a negative equity position. In addition, there are an additional 2.5 million mortgaged properties that are approaching negative equity. Negative equity and near negative equity mortgages combined account for nearly 38 percent of all residential properties with a mortgage.
Much like foreclosures, the distribution of negative equity mortgages is heavily skewed to a small number of states as three states account for roughly half of all mortgage borrowers in a negative equity position. Nevada (66 percent) had the highest percentage with nearly two-thirds of mortgage borrowers in a negative equity position. Next highest is Arizona (51 percent) and Florida (49 percent) followed by Michigan (48 percent) and California (42 percent).“Negative equity continues to be the dominant driver of the mortgage market because it leads to foreclosures in the event a borrower experiences some kind of economic shock such as a job loss, illness or other adverse situation. Given that negative equity did not increase this quarter and home prices declines are moderating or flattening, we may be at the peak of the negative equity cycle. However, until negative equity recedes and unemployment declines, mortgage risk will continue to be very elevated,” said Mark Fleming, chief economist for First American CoreLogic.
Related posts:
- Almost 11 million homeowners are underwater on their mortgage Average value of home with “underwater” mortgage $210,300 – Average...
- Almost one-in-four borrowers underwater on home mortgage Seventy Percent of all mortgaged properties in Nevada are underwater...
- U.S. Home prices continue to decline Dennis Norman Forecast is for further declines In a report...
- Fewer home owners are underwater on their homes according to Zillow report Dennis Norman The percent of American home owners with...
- Are home sale-leasebacks opportunities for real estate investors? Dennis Norman I was at a real estate industry...
Related posts brought to you by Yet Another Related Posts Plugin.
Recent Comments