11 Jul 2017 – Mortgage Professional Magazine
The number of underwater mortgage borrowers has fallen to below 2 million for the first time since 2006.
The figure is revealed in the latest mortgage report from Black Knight Financial which shows a 16% decline in underwater borrowers in the first quarter of 2017 with 350,000 borrowers regaining equity.
“The steady upward trajectory of home prices continues to improve the equity positions of many homeowners,” said Black Knight Data & Analytics Executive Vice President Ben Graboske. “Over the past year, we’ve seen a 35% decline in the total underwater population. As of today, there are 1.8 million underwater borrowers remaining, the first time this population has fallen below two million since 2006.”
Graboske says there is disparity in the figures though and it’s not just geographical but also in the demographics of borrowers.
“Nearly half of all borrowers who remain underwater own homes in the lowest 20% of prices in their respective markets. While the nation as a whole now has a negative equity rate of just 3.6%, among owners in that lowest price tier, it’s over 8%,” he said.
“These lowest-price-tier properties are more than twice as likely to be underwater as those in the next price tier up, and 6.5 times more likely to be underwater than those living in the top 20 percent of the market,” added Graboske.
The rebound into equity in the last year means that the number of homeowners with equity is the largest it’s ever been, more than 40 million. The tappable equity is centered in the largest metros with almost 40% of in California alone.
Call me to discuss a Cash Out Refinance to pay off all your debts with Tax Deductible Mortgage Financing.
Even if another Bank or Lender has said “NO,” we will work with you until we can say “YES.” If you have already started in our Qualification Coaching Program, call us, so we can check your progress!
Call us 1st to AVOID mortgage problems,
Call us 2nd to SOLVE them!
885 E Collins Blvd Ste 110
Richardson, TX 75081
My Branch Closes FHA / VA & USDA Loans at 580+ in Texas, Oklahoma & Louisiana
Gold Financial Services is a Division of Amcap Mortgage, Ltd. NMLS #129122. Equal Housing Lender
J. Scott Harris is a Nationally Recognized Mortgage & Social Media Authority.