Miami Loan Modification Attorneys Were Right: 1 in 3 Homeowners Still Underwater

Despite all the talk about the economy turning a leaf, our Miami loan modification lawyers were right on the mark: Most U.S. homeowners are still drowning.
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Seeking a Miami loan modification is one life raft that homeowners can grab hold of. Those with Ocwen home loans in Miami are at a special advantage in terms of the options available, with the unveiling of a new shared-appreciation mortgage that is being more widely offered.

Our Miami mortgage loan modification lawyers can help.

There is one thing, however, we wish we hadn’t been right about – the scope of the country’s housing crisis.

Zillow, a real estate listing and valuation service, has overhauled its whole methodology for figuring out which homes should actually be deemed “underwater.” That is, which homeowners owe more on their homes than what their property is actually worth.

What this new methodology indicates is that there are about 10 percent more homeowners with underwater mortgages – costing more than $300 billion than previously believed.

Those figures may be hard to wrap your head around, so here’s a little break down.

Back in March, another real estate valuation firm called CoreLogic figured that there were a little more than 11 million homeowners who were underwater. They represented about 23 percent of all of those individuals who held mortgages. They also collectively owed $715 billion more than what their homes were actually worth.

These are some of the most commonly-cited figures when we’re talking about the mortgage crisis.

So then we look at Zillow’s new tally. They have updated their figures to indicate that in fact 16 million homeowners are underwater. that breaks down to more than 31 percent of all homeowners. Additionally, it’s estimated that they owe approximately $1.2 trillion more than the value of their homes.

Zillow’s economists say that their new method of determining who is in default actually creates a much better picture of what’s actually happening. Rather than using databases of public records, the organization has teamed up with a credit rating agency that can estimate the total outstanding mortgage debt. Credit reports can offer a more up-to-date image of what’s happening, versus public records, which can only offer the value of a loan at the time it was approved.

the data shows that Florida has among some of the highest rates of underwater properties in the nation. For example, while the national percentage is at about 31 percent, the average for Miami-Fort Lauderdale stands at more than 46 percent. In Orlando, it’s nearly 54 percent. Of those, there were 27 percent and 20 percent of households, respectively, that were delinquent on their monthly mortgage payments.

Other areas that ranked particularly high were Las Vegas at 71 percent, and Phoenix and Atlanta, which were both ranked at 55 percent.

A Miami mortgage modification can be one solution for underwater homeowners. Seeking out an experienced attorney to help you navigate the murky waters and avoid the sharks is an invaluable investment.

If you’re battling foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.

Additional Resources:
Negative Equity More Widespread Than Previously Thought, Report Says, By Robbie Whelan, The Wall Street Journal

More Blog Entries:
Miami Foreclosure Watch: Tell The Banks to Prove It, May 22, 2012, Miami Foreclosure Lawyer Blog