CoreLogic recently reported that the number of Silver Spring homes underwater has decreased. Since the fourth quarter of last year, the percentage of negative equity homes has gone from 25.2 percent to 23.7 percent. This equates to almost 1 million homes.
“In the first quarter of 2012, rebounding home prices, a healthier balance of real estate supply and demand, and a slowing share of distressed sales activity helped to reduce the negative equity share,” said Mark Fleming, chief economist for CoreLogic. “This is a meaningful improvement that is driven by quickly improving outlooks in some of the hardest hit markets. While the overall stagnating economic recovery will likely slow housing market recovery in the second half of this year, reducing the number of underwater households is an important step toward reducing future mortgage default risk.”
The CoreLogic report also stated that the bulk of negative equity is concentrated in the low end of the market with homes valued at $200,000 or less. Another contributing factor was the revision made to the HARP program which removed the 125 percent LTV (Loan-to-Value) cap. This change allowed more than 22 million borrowers to be eligible for HARP 2.0 when considering LTV alone.
While some homes are finally moving out of the red-zone, many homeowners are still struggling to make their mortgage payments. If you are a distressed homeowner in Silver Spring, MD who is seeking foreclosure alternatives and would like to learn more about possible solutions, contact Emcee Arah online or call 301.452.5252. As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, Emcee Arah has made it his mission to know the best possible options available to distressed homeowners for both their present and their future…and you can trust that your free consultation will be completely confidential.