About 6.3 million of them remain underwater on their loans. The average amount of negative equity they’re carrying is often significant — they owe an average 33% more than their house could command in a sale today. That gives you an idea of the widespread pain still being felt in the wake of the bust and recession.
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The average negative equity balance for owners with two mortgages is about $75,000, according to CoreLogic. For households with one mortgage, the average negative equity is around $52,000.
AND
At the end of March, 10 million owners had less than 20% equity in their properties, and 1.6 million of them had less than 5%. Given real estate transaction costs, most people with less than 5% equity would have to bring money to the table to pay off the debt on their house when they sell.
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EleBlog ADD-ON: I’m not sure the article provided enough perspective. How many homes are there in the U.S., and how many are rented — etc.? Here’s a slice of the data in a Q1/14 Census Bureau report (dated 4/29/14):
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