Underwater Homeowners Falling, but Millions Still Owe More than What Their Homes Are Worth
Being underwater on your mortgage loan is tough. That’s when you owe more on your mortgage than what your home is worth. This is an especially challenging position if you need to sell your condo or single-family home. You might have to write a check to your lender when the sale closes.
Say you owe $300,000 on your mortgage but you are only able to sell your home for $280,000. You might have to write a check for $20,000 to your lender to cover that shortfall.
But there is some good news regarding underwater homeowners. According to the latest research from CoreLogic, there are fewer of them out there today.
According to the latest research from CoreLogic, the number of U.S. homeowners who regained positive equity in their homes actually rose during the second quarter of 2016.
During the quarter, about 548,000 homeowners regained positive equity in their residences. That means that about 92.9 percent of all U.S. homes with a mortgage are now worth more than what their owners owe on their home loans.
Of course, that means that there are still millions of homeowners who are underwater. CoreLogic reported that in the second quarter the number of homeowners in the United States who owed more on their loans than what their homes were worth, stood at 3.6 million or about 7.1 percent of all homes with a mortgage.
This is a fall of about 13.2 percent from the second quarter of 2015, when 4.2 million homeowners with mortgages were underwater.
Still, the improving statistics don’t mean much for those homeowners who are underwater and who want to sell.
There isn’t much that these owners can do to improve their financial situation. If they absolutely don’t have to sell, they could wait and let their home regain more value. They can also do whatever they can to get the highest possible sales price from their home if they do have to sell.
The best way to do this is to work with a REALTOR®. This professional can market your home to the deepest pool of potential buyers. They can also help you stage your home so that it looks its absolute best. These steps will do the most to improve your odds of selling your condo or single-family home for the highest possible price.