A recent report detailing negative equity among homeowners nationwide found that fewer homeowners are underwater. The national rate dropped to 15.4 percent in the first quarter, from 18.8 percent one year ago.
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Defined as owing more on your home than it is worth, being underwater restricts many homeowners from selling or even refinancing their home without taking a major financial hit.
While the report is an optimistic indicator for the overall health of the real estate market, it’s important to note that some homeowners are suffering from deeper negative equity than we’ve previously seen. In fact, 930,000 mortgage holders owe twice their home’s value, and experts speculate that it may take these homeowners a decade or longer to regain positive equity in their property.
Are you underwater and feeling stuck? Give us a call. We have an excellent team of experienced agents and lenders who would be happy to assist.