More US mortgages 'underwater'
The number of American homeowners with negative equity is up to 28.6%, but foreclosures are down, according to Zillow.
This post comes from Prashant Gopal at partner site Bloomberg Businessweek.
The number of U.S. homeowners who owe more than their properties are worth climbed in the third quarter as lenders repossessed fewer houses, according to real-estate data provider Zillow.
The share of borrowers with negative equity rose to 28.6%, up from 26.8% in the second quarter and 23.2% a year earlier, the Seattle company said Tuesday. Last quarter's portion was the biggest since Zillow began tracking the measure in the first quarter of 2009, when 22.3% of households were "underwater."
The number increased because fewer delinquent properties are being taken over by banks, said Stan Humphries, Zillow's chief economist. Banks have slowed the pace of seizures as they negotiate with state attorneys general probing the mishandling of foreclosure documents.
"We still have very high negative equity rates," Humphries said in an email. "That's putting extreme pressure on households because temporary job losses translate into foreclosures at much higher rates when the household is in negative equity." Post continues after video.
Foreclosure filings in the United States declined 34% in the third quarter from a year earlier, RealtyTrac said Oct. 13.
Lenders are getting more aggressive with severely delinquent loans, Fitch Ratings said in a report Monday. The rate of foreclosure starts on loans that were at least 10 months delinquent climbed to 12.3% in October from 6.7% in May, Jonathan Hoke, a Fitch analyst based in New York, said in a telephone interview.
The Zillow Home Value Index dropped 0.2% from the second quarter and 4.4% from a year earlier, the company said. Home values fell from the previous three months in 105 of the 157 markets measured. The only increases among the 25 largest cities were in Detroit, Boston, Denver and Pittsburgh. Washington and Fort Myers, Fla., had declines in the third quarter after two consecutive increases.
More on Bloomberg Businessweek and MSN Money:
- Homeownership near 13-year low as mortgage rules crimp sales
- Home equity borrowing's ugly aftermath
- Mortgage bond prices show refinancing limits
- Feds expand help for homeowners
- How to fix the housing mess
- Today's lowest mortgage rates
The countries economy seems to be indicated by the real estate market. How is that possible, its just a product like food.
What ever happened to food, clothing and shelter. Next big item waiting in the wings is Food for wall street to destroy.
Shelter when south and wall street had enormous gains. Something is wrong. duh.
I need to ask MICHAEL MOORE
Or Bill Clinton , the next big landlord for vacant housing.
Call your rental agent , Billy boy Clinton.
When are these so called "investigative journalists" going to actually do some investigating. They choose to report on "data" from Zillow? Really? Instead of getting data from say, HUD or the National Association of Realtors, they go with a back-of-the-cereal-box data source like Zillow. America IS doomed if we continue to believe everything we hear and continue to trust the "source" because they said, "trust me".
It's pretty bad when China starts looking like a safe-haven.......
the big reason that i have seen is they would rather foreclose on someone versus take a 20% cut on the principle even though I had to at work because of the crisis, they were at least 25% at fault in I personally think MORE then they sell it for less than they were offered from me.
my value went from 162000 to 49000-55000 kind of big hit i had asked them to roll a 10k 2nd into the 1st refi me into 15 yr note would of saved 200 per month they said no the value wasnt in the house. after 14k over 13 months i quit paying on the dead horse they kept refusing to help in any way even after the FHA offered the HUD # 10-173 for underwater home owners fannie and citimortgage both said they work with that but they wont due a principle write down which is required by the code.
Can anyone explain why elected officials don’t want regulations put on big banks? Realtors and mortgage brokers are to blame for a large part of the foreclosure problem…
It always amazes me when I hear of huge corporations firing thousands of employee’s and turn right around and give million dollar bonuses to the head CEO…
I just doesn’t make sense to fire so many and give one person millions of dollars… Where’s the cost savings there?
I've seen prices stay the same in some areas and fall in others. Just depends if you overpaid for you house. A lot of new track homes were overpriced. Older neighborhood didn't see the hugh swings and stayed pretty stable and will continue to do so, while you will see the cheaply built track homes fall as the houses deteriorate and the market moves away. Some of the newer homes built by quality developers are actually still doing well but those individuals tend to be financially secure.
Instead of "giving" more to the banks who just keep it for bonuses... for a change offer it to people who are under water to refinance at lower rates from loans written by these bankers who caused this problem driven by their greed.
Lower payments would mean more money would be pumped into the economy...
Trickle "down" did not work ( it went into the huge bonuses) ...why not try trickle up?
It's the taxpayers (99%) money help them with it. Tax payers need assistance not banks to be given out for the 1%'s bonuses.
YOU are the dumb one. Ever heard of punctuation, grammar, etc?
Ever heard of an education?
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