More than 30% of mortgage borrowers still underwater
NEW YORK (CNNMoney) — Despite rising home prices, more than 30% of borrowers, or close to 16 million homeowners, were underwater on their mortgage during the first quarter, according to Zillow.
The percentage of borrowers who owed more on their home than it was worth increased to 31.4% during the quarter, up slightly from 31.1% three months earlier, according to Zillow. In the year-ago period, 32.4% of all borrowers had negative equity on their loan.
The uptick in underwater homeowners occurred even though home prices have slowly started recovering. On Wednesday, the Federal Housing Finance Agency reported that national home prices rose a modest 0.6% during the first quarter, the first price gain since 2007.
Nevertheless, the percentages of homeowners who were underwater on their homes remained high as delays in the processing of foreclosures kept many delinquent borrowers on the balance sheets, said Zillow. Once a bank repossesses a home, the mortgage holder’s negative equity is no longer considered part of the tally.
Rest here…
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HELLO WAKE UP!
Did you ever think that the Home owners may NOT be underwater if they’re SUBPRIME LENDERS have SOLD their MORTGAGES to WALL STREET…
It’s a BREECH OF CONTRACT that WALL STREET converted the HOMEOWNERS PROMISSORY Mortgage NOTE into a STOCK ASSET which CAN NOT BE UN DONE!
DON’T LET THIS HYPE ABOUT THE UNDERWATER FOOL YOU.
ALL MORTGAGE SECURITIZATION IS ILLEGAL AND CA– USES FRAUD…
THAT’S INVALID AND VOID because ONLY the LENDER has the RIGHT TO FORECLOSE NO ONE ELSE.
THE BANKSTERS GOT BAILED OUT BY THE FEDS AND THE TAXPAYERS…
THE DEBT WAS FORGIVEN AND NOW THE BANKSTERS ARE DOUBLE and possibly TRIPLE DIPPING ON SECURITIZED PROPERTIES.
THIS IS WHY THEY’RE ROBO SIGNING, BECA– USE THEY GOT GREEDY AND LEFT THE BACK DOOR OPEN TO SECURITIZATION WHEN THE SUBPRIME LENDERS WENT BANKRUPT, AND OUT OF BUSINESS DIDN’T ASSIGN ANY OTHER BANKS BECA– USE THEY JUST CAN’T AFTER A SECURITIZED ASSET…
THAT’S WHY YOU HAVE THE PRETENDER SERVICERS BRINGING FRAUD on the NOD, SOT, DOT, AOTDOT. BECA– USE MERS CAN’T SUBSTITUTE ANYONE, YOUR LENDER RESERVES THE RIGHT…
OTHER SUBSTITUTES HAVE TO BE STATED, AND ASSIGNED IN THE DOT BY YOUR LENDER OR IT’S INVALID.
IN ADDITION IF YOUR SUBPRIME LENDER HAS WENT OUT OF BUSINESS THEN THE DEED OF TRUST ALSO DIES AND IT’S UNENFORCEABLE.
GO TO THE SEC AND FIND YOUR BANK BY THE YEAR THE YOU HAD YOUR LOAN AND IF YOUR BANK ADDRESS MATCHES THE SAME ADDRESS ON YOUR DEED OF TRUST THEN THE GAME IS OVER WITH THAT BANK SERVICER BECA– USE IT”S FRAUD…
This will never get better until principal reduction combine with refinancing is on the table for all of the underwater homeowners
Strategic default would be how you think it would go.Oddly enough most people are still living under the belief (it will never happen to me),until this mind set is set aside there will be no hope.Too bad it has to go this way but even trying to educate people they think your a flaming nut case and won’t listen.When enough have suffered maybe then things will change for the good,if it doesn’t we are all going to be in very desperate straits.
you are right pamela, i tried to help a friend of mine in st pete fl and she walked away. she could not take the pressure from chase foreclosing. i took wells fargo on straight ahead. new the week i was to be served and have not looked back only forward.
“RECOVERY IS NEAR!” I think that when we get to more than 50% underwater then we may see change.
How much longer will American homeowners continue to pay on underwater mortgages that were based on falsely inflated (bogus appraisals) values? What useless bank loan mods or phony “life preserver” government programs will be offered? You know – the programs designed to trick and trap (Hamp, Hope, Harp etc.) When will American Homeowners STRATEGICALLY DEFAULT? What would the Mortgage Bankers Do? Read another perspective here: http://ohiofraudclosure.blogspot.com/2012/05/drowning-in-debt-underwater-mortgages.html
Is that figure 30% before or after home values were tweeked up…..according to zillow my home value rose almost 90k ??? They tweek stuff to make the figures look low when really…Id bet its more like 60%. who is at the controls again Berneke?? another illusion? who do u believe anymore?