In some counties, the number of people who still owe more on their mortgages than their homes are worth is climbing up from about 7.5 million.
The millions of foreclosures stemming from the Great Recession made for dramatic headlines. Now, the housing markets in many of the hardest-hit areas have recovered, and cities such as San Francisco, Los Angeles, and New York are even seeing record real-estate prices. Yet while the national housing market may be well on the way to recovery, the markets in some areas of the country are actually getting worse, according to a new report out from the Center for American Progress.
The report indicates that there are still more than seven million homeowners who are underwater in America—that is, they owe more on their homes than the homes are worth. In some 1,000 counties, the number of underwater homes is stagnant or increasing, threatening already struggling regions with the potential of more foreclosures, more empty and abandoned homes, and more people who opt to rent instead of buy, which drives up the price of apartments.
“It’s easy to say housing crisis is over but, for many parts of the country, it’s certainly not. The recession isn’t either,” said Sarah Edelman, one of the authors of the report.
Comment: I think there’s another 12 nillion foreclosures on the horizon displacing another 50 million Americans. The continued REMIC tax fraud and servicing fraud is getting costly. Look at the settlements coming down the pike. But none of those penalties get to the victims of the fraud: homeowners. The courts appear to be figuring it out however slowly.