Negative Equity

Negative Equity: Not Good But Improving

December 15, 2010

Back in October, we posted that falling home prices would drive more homeowners into a negative equity situation where their home was worth less than the amount of their mortgage (also known as the house being ‘under water’ or ‘upside down’). If a homeowner falls further into negative equity, it increases the chances that they [...]

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New Modifications: Nonsense or Does It Make Sense?

March 29, 2010

Last week ended with a somewhat surprising announcement that the administration has decided to offer an addition to their modification program called Making Home Affordable Program Enhancements to Offer More Help for Homeowners. The new enhancements look to give relief to people who are unemployed and those approaching 20% negative equity in their homes. Why [...]

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I’m Fine, It’s My House That’s Drowning.

March 1, 2010

First American Core Logic just released their Fourth Quarter 2009 Negative Equity Data Report last week. Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgage than their homes are worth. The reason this report is so important is that studies have shown that there is a direct [...]

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Built on Jenga Blocks, Home Prices Look Shaky

February 2, 2010

The Homebuyers’ Tax Credit, in many ways, has done exactly what it was suppose to do – stimulate the economy. Notice I didn’t say increase home ownership. The tax credit was never really about buyers. It was about keeping home values stable so the housing sector would not have another wave of foreclosures that would [...]

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Walking Away from Negative Equity

January 22, 2010

Today let’s look at negative equity and attempt to determine what impact it will have on a housing recovery in 2010. Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgage than their homes are worth. Negative equity can occur because of a decline in value, an [...]

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The Impact of Foreclosures on Real Estate in 2010

January 18, 2010

Going into 2010 things were looking rather ‘bullish’ for the housing industry. Sales were up and prices seemed to be stabilizing. But in the last few weeks we are starting to see how fragile the recovery actually is. Obviously, when the government ends its support after the first quarter (no longer holding down interest rates [...]

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