Negative Equity Rate Falling, But 4 Million Borrowers May Be Trapped Underwater Team Thayer Real Estate News
Justin Lee Thayer / Eugene Oregon The number of borrowers who owe more money than their home is worth is slowly decreasing; however, more than half of these borrowers are stuck in an underwater free fall with little to no hope of resurfacing. According to Zillow ’s first quarter Negative Equity Report released today, although the negative equity rate is falling, about 4 million homeowners owed at least 20 percent more than the worth of their home. In order for these underwater homeowners to even come close to breaking a sale, their homes would have to appreciate by more than the percentage at which they are underwater. "It's great news that the level of negative equity is falling, but what really worries me is the depth of negative equity,” said Dr. Stan Humphries, Zillow’s chief economist. “Millions of Americans are so far underwater, it's likely they may not re-gain equity for up to a decade or more at these rates," "And because negative equ...