Number of Underwater Homeowners Falls 47.5%

The number of homeowners who owe more on their mortgage than their home is worth has fallen 47.5 percent since the beginning of 2012. According to the federal government’s most recent Housing Scorecard, released by the U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury, nearly 6 million underwater homeowners have been lifted above water as home prices increased from post-crash lows over the past two years. The improvement has pushed homeowner equity up 55 percent since the end of 2011. In fact, by the third quarter of 2013, homeowner equity was slightly higher than it was at the end of 2003. Despite the progress, officials caution that there is more work to do. Edward J. Szymanoski, HUD’s associate deputy assistant secretary for economic affairs, said there are encouraging signs that the housing market recovery is providing millions of American homeowners with more economic security but there remains work to do in order to address the remaining underwater borrowers. More here.

Comments are closed.