CoreLogic reports that 22 percent of all homes with mortgages are underwater and even though that is an improvement with 1.4 million borrowers returning to positive equity through the first 9 months of 2012, unfortunately it is still a lot of distressed homeowners. 5 states including Nevada, Florida, Arizona, Georgia and Michigan accounted for over one third of all underwater homeowners.
The situation is not quite so bad in the Charleston real estate market and while some homeowners have lost their homes to foreclosure and others have taken the short sale route, the good news is that not everyone who owes more on their home will take that route and harm their credit but instead will bring the necessary funds to closing to cover the shortfall owed on their mortgage.
I’ve been the listing agent as well as the buyers agent in a number of situations where sellers brought funds to closing and it’s certainly a credit to those homeowners who took responsibility for their debts. Of course, they were certainly fortunate to have the money to be able to do so and unfortunately, not everyone is in that financial position.
But the sad fact is that if you happened to buy your home at the top of the market, despite improvement in the Charleston housing market you more than likely haven’t gotten back to break even just yet.
Photo courtesy of Flickr Creative Commons by DVIDSHUB