negative equity

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Home Prices See Biggest Jump Since 2005

Growing shortage sends prices upward

(Newser) - House prices had their biggest jump in years in the second quarter of 2012, mainly because of a big shortage of houses for sale, reports the Wall Street Journal . Officials from data firm CoreLogic say it was the biggest jump since 2005, while Freddie Mac, using different methodology, says the...

Millions Considering Walking Away From Mortgages

10% of mortgages expected to be underwater by June

(Newser) - The long slide in property values has left huge numbers of homeowners considering just walking away from their mortgages. People start thinking about jumping ship when their home value falls below 75% of what they paid for it, according to new research. Over 5 million Americans are expected to be...

Watchdog: Feds Need to Expand Foreclosure Plan

$50B plan proving ineffective as more mortgage holders lose their jobs

(Newser) - The Treasury's $50 billion loan-modification program is in danger of being swamped as the foreclosure crisis accelerates, the Congressional Oversight Panel said in a report yesterday. The Home Affordable Modification Program has met its target of 500,000 trial mortgage modifications started by November 1, but the watchdog warned that...

1 in 5 Homeowners Underwater
 1 in 5 Homeowners Underwater 

1 in 5 Homeowners Underwater

Negative equity spikes to 21.9% as prices keep dropping

(Newser) - More than one in five American homeowners owe more on their mortgages than their homes are worth, according to a new study. The increase in negative equity has been accompanied by new signs that first-time buyers are taking advantage of lower prices in the housing market. But as prices continue...

White House Starts Mortgage Rescue Plan

(Newser) - The White House today kicked off its $75 billion plan to curb mortgage foreclosures, the Wall Street Journal reports. The federal dollars will both push lenders to lower monthly payments and help homeowners keep paying. “Today, we are providing servicers with the details they need to begin helping eligible...

1 in 5 Homeowners Underwater
 1 in 5 Homeowners Underwater 

1 in 5 Homeowners Underwater

(Newser) - More than 20% of Americans with home mortgages owe more to their lenders than their homes are worth, a 2% rise since September, the Washington Post reports. The hardest-hit state was Nevada, where 55% of homeowners with mortgages have negative equity. These 8.3 million homeowners nationwide are much more...

Hillary: Bailout Must Help Homeowners
Hillary: Bailout Must Help Homeowners

Hillary: Bailout Must Help Homeowners

Wants federal company to buy bad mortgages, address root causes

(Newser) - As Congress debates the terms of the $700 billion bailout, Hillary Clinton warns in a Wall Street Journal op-ed that "this is not just a financial crisis; it's an economic crisis." For the New York senator, any federal action has to tackle the underlying causes of the turmoil—...

Housing Dip Sends 1/3 of Owners Into Negative Equity

(Newser) - Nearly a third of US homeowners who bought in the last 5 years owe more on their mortgage than their house is worth, according to a report by Internet valuation site Zillow. Prices of houses dropped 9.9% in the second quarter, compared to the previous year, sending 29% of...

Bush Readies Mortgage Bailout
 Bush Readies Mortgage Bailout 

Bush Readies Mortgage Bailout

Aid plan would back new loans for homeowners in 'upside-down' mortgages

(Newser) - Homeowners facing foreclosure could soon be getting a helping hand from the Bush administration, the Washington Post reports. Details are being finalized on a plan that would see portions of loans forgiven for people who now owe the bank more money than their house is worth. The remainder would be...

Bernanke: Homeowners Need More Help

Fed chief calls for writing down problem mortgages' principal

(Newser) - Ben Bernanke says homeowners need more help, and that help might include writing down the principal on some problem loans, reports the Wall Street Journal "Efforts by both government and private-sector entities to reduce unnecessary foreclosures are helping, but more can, and should, be done,"  the...

Sinking Home Values Lead to 'Walkaways'

Owners grappling with negative equity can afford to pay but choose not to

(Newser) - Freefalling home values may be creating yet another crisis in the mortgage industry. The new phenomenon: homeowners capable of paying their mortgages who walk away, unwilling to pour money into a property that’s worth less than they originally paid. "It may not be a big thing yet, and...

Feds Ponder Rescue Plans as Housing Slump Worsens

More than 10% of homeowners are 'upside down' on mortgages

(Newser) - With one in 10 US homeowners owing more on their homes than they’re worth, the highest proportion of negative-equity loans since the Depression, the government is weighing plans that would apply the brakes to the rapidly accelerating housing market collapse, the New York Times reports. Possibilities include federal loan...

Negative Equity Adds Another Crippling Factor

Forbes examines pitfalls of having a loan worth more than home

(Newser) - Foreclosure is scary enough, especially at its current pace—79% more US homes foreclosed in 2007 than the year before. But, Forbes writes, the housing crisis is dumping an even scarier problem on mortgage holders around the country: negative equity, in which a mortgage is worth more than the house...

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