Most homeowners consider that their home is their primary asset but unfortunately for many people this is no longer the case and their home is a liability rather than an asset. One of the common reasons people seek advice from me regarding bankruptcy is because their home is underwater Which means that the amount owed on the mortgage is higher than what the home is currently valued at if it were sold. This means that if they have mounting debts they aren't able to be offset by the value of their home. Filing for Chapter 7 bankruptcy is a way of wiping out overwhelming debt while still being able to keep your home.
It seems that the underwater home phenomena has become an epidemic in recent years, so I thought it would be interesting to take a look at some recent figures regarding underwater homes in the U.S. Recent numbers released by a company called CoreLogic show that the number of underwater homes in the U.S. has climbed since last quarter. Here's a look at the numbers:
- A reported 11.1 million U.S. homes were underwater in 2011's first quarter, a jump from 10.8 million in the last quarter of 2010.
- Nevada has a 65 percent rate of underwater mortgages, and is apparently the only state in which the average homeowner is underwater.
- Besides the more than 11 million underwater homeowners in the U.S., 2.4 million Americans have less than five percent equity in their houses, according to sources.
- Collectively, we reportedly owe about $751 billion more on mortgages than our homes are worth.
- Analysts predict that home prices could fall by another five to 10 percent in 2011, meaning that those with little equity could soon find themselves underwater.
If you have questions about filing for bankruptcy I offer a free 30 minute telephone bankruptcy consultation where we can discuss your debt situation and determine if you qualify for a chapter 7 bankruptcy.