loader image

4.5 million homeowners are still underwater on their mortgages post-crisis

Single family homes in the U.S. (Credit: Rachel Elaine via Flickr)

Almost 4.5 million U.S. households are underwater on their mortgages a decade after the housing crisis.

About 9.1 percent of households owed more than their homes are worth in the fourth quarter of 2017, Bloomberg reported Tuesday. And about 713,000 owe at least twice as much as their property’s value, the report said, citing Zillow data.

The percentage is declining, but those in areas with stagnant property values are “trapped in their homes with no easy options to regain equity other than waiting,” Aaron Terrazas, a senior economist at Zillow, told Bloomberg.

At the same time, independent mortgage companies are making almost half of new home loans in the U.S., according to a previous report. The trend mirrors lending practices from the subprime crisis, as nonbanks dominate the market for providing loans to borrowers with weak credit and lower incomes. [Bloomberg]Meenal Vamburkar

Recommend0 recommendationsPublished in Real Estate

Share this story with your network.

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on print

Responses

Recent Stories

Del Marie: locked down, but not out

The rapper-dancer-performance poet rolls with the pandemic punches. 2020 started off so well. January and February were great months for 27-year-old rapper, dancer, and performance

Read More »

Speak with a local expert now.

Learn more about this recent happening by speaking with an agent.

X