Underwater homeowners have been suffering for quite a long time since recession hit the country. Could this group of people now breathe a sigh of relief?
RealtyBiz News reports that there are now "many people are finding their property is no longer a burden, even in the hardest hit areas of the country." It is recalled that there are a lot of homeowners who suffer during the recession hit the U.S in 2008.
There are many who experience negative equity on a mortgage. For almost a decade now, these underwater homeowners have been paying mortgage on their houses worth less than their loans.
Even if these people are not facing the danger of repossession, they are still trap in the situation because they can't sell their house if the need arise. For example, they need to move in to a new state because of new job opportunities, but then since they could not sell the property, they would either rent a new house or leave their family behind.
However, there might be a good thing that is coming their way. In the past, it was "impossible to refinance these types of loans or obtain Home Equity loans." Although, this time there is already hope for underwater homeowners. The situation is already changing.
According to Yahoo Finance, RealtyTrac that those a handful of those "seriously" underwater homeowners have now recovered. Data reveals that "at the end of 2015, there were 6.4 million U.S. homes at least 25% under water."
Report says that the record shows "roughly 11.5% of all homeowners with a mortgage. While that sounds like a lot, it's down from 7.1 million at the end of 2014 - 12.7% of all homeowners with a mortgage - and down from 18.8% at the end of 2013." According to RealtyTrac vice president Daren Blomquist, "the number of seriously underwater properties has been cut in half" for the last 3 years and a half. "We continue to deal with a long tail of seriously underwater properties, and it will likely be another five years at least before most of those remaining underwater properties move into positive equity territory," Blomquist added.
Isn't this good news for everyone especially those who have family members who suffer this kind of effect of 2008 recession?
