Tuesday, March 8, 2011

Virginia Is #8 of 50 States For Homeowners Owing More Than House is Worth

Nationally, 11.1 Million mortgage holders currently have negative equity, owing more than their homes are worth as of Q4 2010.  Virginia has 24% underwater "owners", and another 6% are on the brink.

As prices continue falling due to high supply and low demand in the Charlottesville Albemarle Area, more people who bought or HELOC'd between 2004-2010 will fall underwater.

Underwater homeowners can't refi, and it's more difficult to sell when the debtor has to bring cash to closing; it's even difficult when the bank agrees to a short sale, which buyers fear as taking too long.   Read and  Read.

BTW?  Anybody who suggests this area is "better off" because it's not California or Nevada is missing the point of how much $$$ local folks have lost--and are going to continue losing--until the "correction" is entrenched here...in 2013 or so.

2010 Sales
2010 Foreclosures
Price Decline Forecasts

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