Underwater homeowners - Articles

City Sued Over Its Plan to Aid Homeowners Through Eminent Domain

An investor group filed a federal lawsuit against Richmond, Calif., to prevent the city from using eminent domain to seize mortgages of local residents who owe more than their properties are worth in a bid to keep them in their homes. The lawsuit was filed on Wednesday in a Northern California court by mortgage bond... Continue Reading »

Ex-Justice Diane Hathaway Sentenced To Prison For Real Estate Fraud

By Ed White Declaring herself "broken" and "disgraced," former Michigan Supreme Court Justice Diane Hathaway tearfully took responsibility for fraud Tuesday before a judge sentenced her to a year and a day in prison for concealing assets while she was pleading with a bank for a sale on her underwater home. Defense... Continue Reading »

Underwater Borrowers Becoming Accidental Landlords

By Diana Olick Maria Wells said she never intended to be a landlord. She sells real estate; she doesn't invest in it. Now the Florida resident owns two properties. One was her son's, but he had to move to take a new job. The other was hers, but she got married and moved in with her husband. She can't sell either because... Continue Reading »

More Homeowners Gain Equity, Rise Above Water Again

The housing market's massive downturn several years ago took a significant toll on homeowners nationwide, and some are only now finally recovering from it. However, that number grew significantly in the fourth quarter of last year. Between October and December 2012, some 200,000 consumers who had previously been underwater... Continue Reading »

What Is an Underwater Mortgage?

By Diana Olick An underwater mortgage may sound like you're dealing with beachfront property gone bad, but it's actually a term of art in the world of real estate. You probably heard this term in the aftermath of the 2008 financial crisis and its accompanying real estate bubble. So what is an underwater mortgage? CNBC... Continue Reading »

2 Million Underwater Homeowners Rose From Negative Equity in 2012, Report Says

By Cory Hopkins Almost 2 million American homeowners were freed from negative equity in 2012, and the overall percentage of all homeowners with a mortgage in negative equity fell to 27.5 percent at the end of the fourth quarter, according to Zillow's fourth quarter Negative Equity Report. The falling negative equity rate... Continue Reading »

Strategic Default Has a Hidden Cost You Might Not Be Willing to Pay

By Mitchell D. Weiss If you're one of the 28 percent of U.S. homeowners with a mortgage that's higher than your house is currently worth, is it time to toss the keys to your lender and walk away? According to Zillow's third quarter Negative Equity Report, some 14 million people combine to owe an estimated $1 trillion... Continue Reading »

More Underwater Homeowners Bail Themselves Out in 3rd Quarter

The housing market's downturn was so severe that it has taken years to even begin approaching pre-meltdown normalcy, but as it improves, more homeowners are finding themselves in much better financial positions. During the third quarter of the year, negative equity in the housing market took a sizable tumble, according to... Continue Reading »

Expiring Tax Cut Poised To Take a Bite Out of Mortgage Settlement Payouts (Opinion)

By Adam Levin It just may become the latest outrage during a year of outrages. At the precise moment when the federal government finally delivers a modicum of justice and some economic relief to millions of homeowners victimized by the nation's largest banks, the government threatens to beat those victims over the head... Continue Reading »

12 Cities Where Homeowners Are Deep Underwater

By Mamta Badkar Analysts have been out saying housing has turned the corner. Adding to signs of a recovery is a report from Zillow that shows that the number of homeowners in negative equity -- in which a borrower owes more on their mortgage than their home is worth -- is declining. Being in negative equity is also known... Continue Reading »

Home Price Gains Pull 400,000 Homeowners Above Water

Home price increases helped more homeowners regain some equity in their homes during the second quarter, according to an analysis by Zillow. Zillow's Negative Equity Report estimates that 30.9 percent of homeowners with mortgages owed more than their homes were worth at the end of June, down from 31.4 percent at the end... Continue Reading »

Real Home Price Recovery Not Expected Until Spring

By Les Christie NEW YORK -- Even though home prices are rebounding in some parts of the country, the overall housing market won't start turning the corner until next spring, according to the latest forecast based on the Fiserv Case-Shiller indices. The forecast, which tracks 384 markets, predicts that nationwide home... Continue Reading »

Should Underwater Homeowners Just Walk Away?

Almost a third (31.4 percent) of homeowners with mortgages are underwater, according to the 2012 first-quarter Zillow Negative Equity Report, yet 90 percent of them are current on their mortgages and continue to make payments. Deciding whether to "stay and pay" on a home that's worth less than you owe is a tough financial... Continue Reading »

More Than 30% of Mortgage Borrowers Still Underwater

By Les Christie @CNNMoney NEW YORK -- Despite rising home prices, more than 30 percent of borrowers, or close to 16 million homeowners, were underwater on their mortgage during the first quarter, according to Zillow. The percentage of borrowers who owed more on their home than it was worth increased to 31.4 percent... Continue Reading »

Former Housing Boomtown Hangs by a Thread

STOCKTON, Calif. -- A red, white and blue sign declaring Stockton an "All-America City" still adorns City Hall, but the building's crumbling facade tells the real story of the community's recent fortunes. Since the sign went up nearly a decade ago, Stockton has twice topped Forbes magazine's list of "America's most... Continue Reading »

Bernanke: Housing Still Hurting Consumer Spending

WASHINGTON -- Ben Bernanke says declines in home prices have forced many Americans to cut back sharply on spending and warns that the trend could continue to weigh on the economy for years. The Federal Reserve chairman drew the connection between home values and consumer spending, which fuels 70 percent of economic... Continue Reading »

Obama's Refinance Plan: Who Will Benefit?

WASHINGTON -- Today's record-low mortgage rates are out of reach for millions of U.S. homeowners who would benefit from them most. One in four homeowners with a mortgage -- 11 million people -- owe more than their home is worth. These "underwater" borrowers have virtually no shot at refinancing. Their plight is a drag on... Continue Reading »

How YOU Would Solve the Mortgage Crisis

We asked, you answered. AOL Real Estate's post on the idea that banks should be forced to offer principal loan reductions on underwater mortgages brought an avalanche of comments, including some calling for a grassroots revolution. One reader suggested, "Perhaps EVERYONE should STOP paying their mortgages for a year, not... Continue Reading »

Underwater Nation: Are Home Prices Drowning?

We've been hearing the drill for a while now: Home prices are down, having dropped 2.6 percent nationwide during the last three months of 2010. Foreclosures keep coming as if they were on an assembly line. In Phoenix, it is estimated that as many as 70 percent of homeowners are underwater on their loans. The story is not... Continue Reading »

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