The rate of US homeowner trapped by underwater mortgage has been reduced in the second quarter, giving way to confidence that lesser defaults and foreclosures will be observed in the future months. The percentage of single family mortgaged homes fell to 21.5 from a 23.3 number in the 1st quarter. A year ago, the percentage was 23% in the same time.
Underwater mortgages pertain to the situation where the amount due on the mortgage exceeds the property’s actual value. If this happens, property owners plunge to negative equity and gets to be unqualified for home refinancing and selling.
Even with the positivity, Stan Humphries, Zillow Chief Economist, caution against a celebration. âWhile fewer homeowners were underwater in the second quarter than the first, it’s not yet time to break out the champagne bottleâ, he told Reuters.
