According to Bloomberg, many people who have bought their house in the last 5 years now owe more than their home is worth.
Many people as in about 33% of new homeowners!
According to Stan Humphries, Zillow's vice president of data and analytics: "For homeowners who need to sell, this is a gravelyserious situation,'' Humphries said in an interview. "It canalso be harmful to communities where the number of unsold homesadds more to inventory and puts downward pressure on prices.''
Zillow Chief Financial Officer Spencer Rascoff went on to comment in a Bloomberg TV interview:
"Sellers are starting to adjust their expectations, more sellers accepting a loss isactually a sign of optimism. It means that the transactionsmight start happening. There are so many sales contingent uponthe buyer selling their home.''
Do you owe more than your house is currently worth? The new Housing Bill / FHA Expansion / Hope for Homeowners program may be able to help you.
