UNDERWATER MORTGAGES

A new report from Zillow Inc. revealed on Sunday that the number of U.S. homeowners with underwater mortgages has increased to 28 percent. The increase occurred in the first quarter of 2011 as a result of the housing market experiencing massive drops in property values.

Home Prices Dropped 8.2 Percent

The Home Affordable Modification Program (HAMP) could be reaching its final days, at least according to a bill passed by the House of Representatives on Tuesday night to shut it down. The program, started to help homeowners with underwater mortgages modify their loans, has faced criticism for months that it is all but effective.

HAMP Not Offering Enough Help

Debt is a real problem for a lot of people in our country. Whether it’s a credit card balance or mortgage loan, getting in over your head when it comes to owing money can feel like a hopeless situation. It doesn’t have to be, however, if you employ some tried and true debt reduction strategies, one of which is the easiest and least expensive options: Asking.

First Step in Debt Reduction Plan: Ask Lender for Help

Anyone in the market for a mortgage loan is being asked to reconsider making a home purchase until prices drop further, according to a new report from CNN Money. In the report, one expert predicted we could see a housing double dip, meaning any homes purchased now could be in danger of falling underwater.

Home Prices Could Drop 25 Percent

Underwater mortgage holders may have another chance to take advantage of mortgage modifications if a proposal by the Obama administration is approved. In the proposal, the president wants to hold mortgage servicers accountable for the foreclosure frenzy of last year by having them take a loss and reduce the principal owed or else face $20 billion in civil settlement fines.

President Hopes New Modification Plan Will Help Borrowers

Underwater mortgages have surged to 27 percent in the United States after a disappointing drop in home prices, according to the latest quarterly real estate market survey released by Zillow.com. The report noted the number of people who owe more on mortgage loans than their homes are worth jumped 3.8 percent in one quarter.

Foreclosures and Lowered Home Prices to Blame

Home values are dropping at an accelerated rate, according to a new quarterly survey conducted by the Wall Street Journal, which is leaving homeowners and sellers strapped with underwater mortgages and an inability to sell. According to the survey, prices declined in almost all of the 28 major metropolitan areas in the fourth quarter of 2010 when compared to a year prior.

Home Values Dropped In Most Metro Areas

Foreclosed homes saw an increase over the summer due to a drop in the number people receiving assistance in lowering their monthly mortgage payments, according to a new report from the Office of the Comptroller of the Currency and Office of Thrift Supervision. The report, released on Wednesday, revealed the number of homeowners receiving help in the third quarter dropped 17 percent from the previous quarter and a 32 percent from the same period in the prior year.

Foreclosures Rose 11.2 Percent

Photo by stevendepolo

A recent study conducted by the Pew Research Center revealed that 36 percent of homeowners feel it’s okay to walk away from a mortgage loan, depending on the situation. In many cases, the present circumstance may be the result of something beyond the homeowner’s control, including job loss or an underwater mortgage.

When it comes to home prices, there’s always someone who benefits and someone else who suffers. Today, news that prices didn’t increase as much as had been predicted in August 2010 is likely to disappoint many. For the housing market and those looking to get away from an underwater mortgage or sell their home, a small increase in prices is bad, but for those looking to buy, this could be good news.

S&P Index Shows Home Prices Increased Less than Hoped