The underwater mortgage rate in Suburban Chicago is the highest percentage wise among 35 such areas in the U.S. says Dennis Rodkin writing in Chicago Real Estate Daily.
The city’s rate was the second-highest among 35 cities.
In the Chicago suburbs, 17.3 percent of homeowners with a mortgage owed more than their house was worth in the second quarter, according to online real estate marketplace Zillow. That’s a higher rate than any of the 34 other major metro areas Zillow tracks.
Suburban Las Vegas was second, at 17.2 percent, but all the rest were below 15 percent. The average nationwide suburban underwater rate was 11.2 percent, according to Zillow.
Taking the Chicago area as a whole, the underwater mortgage rate was 19 percent in the second quarter, down three percentage points from 22 percent a year earlier, Zillow found. The Chicago area was second, after Las Vegas, where 19.5 percent of home borrowers were underwater.
There are still 6.7 million homeowners in this tough position, but the underwater mortgage rate is down by nearly 640,000 from the first quarter of 2015, RealtyTrac reports.
There’s hope for some. Less than 1 percent of all seriously underwater mortgage properties nationwide potentially qualify for principal loan forgiveness under a new mortgage modification program introduced in April by the Federal Housing Finance Agency, which oversees government-backed loan agencies Fannie Mae and Freddie Mac.
To be considered eligible in the RealtyTrac analysis, the seriously underwater properties (loan-to-value ratio of at least 125 percent) need to also be actively in foreclosure, owner-occupied, and have an estimated loan amount no more than $250,000 on a loan that is guaranteed by Fannie Mae or Freddie Mac.
Despite the nation’s steadily growing economy, there are nagging doubts that housing is going to get better from here. However, some experts believe housing will continue as it is for more years to come.
Listening to the experts for advice can be useful, but what do you do when you have been waiting for the right time to downsize? Maybe now is the time to make a move as prices have certainly gone up a lot since the bottom in 2011. Holding out for the last dollar could leave you putting off your plans for a different life.
Are you a young family looking to buy your first house? A slowing or flattening economy is great news for the potential homebuyer. Now you need to make sure your quiver is fully loaded with the arrow of pre-qualification, an expert real estate broker, an arrow for the right neighborhood for your family, and the most important arrow, the down payment.
Are you financially strapped and holding out for prices to rise further so you can get out from underwater? You might see if you qualify for loan forgiveness and/or loan modification. Failing that, the team at Kelbry Properties LLC has been able to help homeowners out of any kind of distressed situation, new homebuyers find their perfect house and other investors find their dream passive income property.
Kelbry Properties LLC is Lake County’s and Mchenry County’s premier real estate solutions company. Since our inception, we have been helping homeowners along with improving communities in each and every city we work in.
Through our extensive knowledge of the business, network of resources, and years of expertise, we are able to assist homeowners with a wide variety of real estate problems. We pride ourselves on our reputation for working one-on-one with each customer to handle their individual situations.
With the ability to directly purchase homes and make cash offers, we can create an extremely fast, and hassle-free transaction.
Call us today at 224-321-5300