Despite the 13% gain in home prices in 2013, some of the home owners in San Jose are still dealing with underwater mortgages where they still owe more on their loan than their property’s value. In our last meeting with Wells Fargo’s Kay Mauer, Manager of Short Sale Group she told that the bank still have more than 4,500 homes with non-performing notes which are idea candidates for Short Sales.
After all, when the home values can not recover with double digit appreciation the owners must realize that they have over-paid for their home. Just like a bad debt, the sooner you get rid of it, the better off you are in the long run.
According to Mercury News “the East Bay communities of Vallejo, Antioch and Richmond are among the nation’s 100 cities with the highest percentages of underwater mortgages, according to a report released Thursday. Of the 100 cities with the highest rates of underwater mortgages, 71 have populations that are more than 40 percent African American and Latino, the institute said.
That includes 18 cities in California, three of which are clustered in the East Bay, according to the report’s lead author, Peter Dreier, chairman of the Urban Environmental Policy Department at Occidental College.”We only looked at the top 100 cities, but there are hundreds of cities where this is a problem,” Dreier said.
Some in congress are calling for federal help in dealing with the continued struggle of minority home owners, but we don’t anticipate much action from Congress specially with the mid-term elections no one is in the mood to sponsor new spending bills. Specially since there are Short Sales, Deed in Lieu and other options available to these home owners.
What do you think?