Short Sale Homes Homeowners Underwater
Have you read the most recent money article out today?
http://money.cnn.com/2008/10/30/real_estate/underwater_borrowers/index.htm?postversion=2008103108
The increase in homes underwater is making more people need to do a short sale on their home, these minnesota short sale homes as seen here: http://www.minnesotainvestors.com/blog/what-short-sale-information-minnesota-short-sale-process/ are reducing what’s owing to the bank so that they can sell the house to an interested party for the new price needed in today’s market.
This article goes on to say this:
“Nearly a fifth of U.S. borrowers owe more on their mortgages than their homes are currently worth - and that number is growing.”
This means sellers would have to bring a check to closing just to get out of the home at the closing to pay off the 1st and or 2nd mortgages. This is also known as negative equity or being underwater with your house. You can’t tap equity or take out a home equity loan in these cases. Estimates are now over 12 million who may have a house underwater financially. Nevada was the state that was hit the hardest, values dropped 30% in the past 12 months, leaving 48% of homeowners with negative equity, that’s incredible. Even those who put 20% down are having a hard time getting out in those states. Arizone, Florida, and California are also big housing bubble states. Some other states near the midwest are also in trouble due to the economy and job losses over the years.
If you think you owe too much on your home, are behind in payments, in foreclosure, or not sure how you will ever be able to sell based on your current condition, please read this article:
http://www.minnesotainvestors.com/blog/what-short-sale-information-minnesota-short-sale-process/
Ron Orr, Jr.
Real Estate Broker
MinnesotaInvestors.com
