Zillow: 12.2M Homeowners Underwater in Q2

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One of the main reasons that so many houses are becoming solvent is thanks to the U.S. taxpayers through the HARP program. Forbes, in Dec 2012, said that the HARP program had costs taxpayers around 150 Billion dollars at that time. Just think, you get to build equity in homes you don’t own. The folks HARP really helped were the lenders who took potential huge losses and turned them into profits. Please read the article below and let me know what you think.

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The national negative equity rate continued to drop in the second quarter as home values marched upward, according to figures released by Zillow.

Zillow’s most recent Negative Equity Report shows approximately 12.2 million homeowners owed more on their mortgage than their home is worth last quarter, down from 13 million in the first quarter and 15.3 million the same time last year.

Those 12.2 million underwater homeowners represent approximately 23.8 percent of all homeowners with a mortgage, Zillow said. The negative equity rate among all homeowners—including those without a mortgage—was 16.7 percent at the end of the quarter. (Roughly one-third of homes are owned without a mortgage.)

For the second quarter of 2014, Zillow predicts the negative equity rate will fall to 20.9 percent, lifting an additional 1.9 million homeowners into positive equity.

“Widespread rising home values during the past year have helped chip away at negative equity nationwide, helping many homeowners who were only modestly underwater to come up for air,” said Zillow chief economist Dr. Stan Humphries. “For those homeowners who are deeply underwater, though, there is still a long row to hoe.”

Out of those homeowners in negative equity, 57 percent were underwater by 20 percent or more, and roughly 13.4 percent owed more than twice their home’s worth.

If home values appreciated at an annual rate of 4.8 percent per year (Zillow’s forecast for the next year), it would take a homeowner underwater by 20 percent nearly four years to reach positive equity.

To see the complete article – please use the link below.

12.2M Homeowners Underwater

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