November 30, 2009 Mara Bushari

According to a recent report by research firm First American CoreLogic, more than 23 percent of U.S. homeowners with mortgages owe more on their properties than they are worth. Another 2.3 million homeowners are within 5 percent of being underwater. About 5.3 million U.S. households have mortgages that are at least 20 percent higher than their home’s value. These homeowners cannot refinance and are stuck with the choice of continuing to pay their mortgage and holding the property until values rise (which could be years), or handing the keys to the bank and having a black mark on their credit score for the next seven years. It is important to note that most U.S. homeowners actually have home equity and nearly 24 million own their home free and clear. This is why we are seeing such discrepancies in sales prices as well as inventory. Many local Boston real estate owners who have home equity or own their homes outright have decided either not to sell their homes in this market, not to significantly negotiate on price, or simply to lease out their property until distressed sales stop peppering the market. The majority of underwater mortgages are in the following states:

1. Nevada: 65 percent of homeowners underwater

2. Arizona: 48 percent

3. Florida: 45 percent

4. Michigan: 37 percent

5. California: 35 percent

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Mara Bushari

Mara is a creative thinker and strategic marketer. She graduated Summa Cum Laude from Boston University’s College of Communication and worked in international finance before joining The Bushari Team. Mara strives to exceed expectations. As Client Relations Specialist, she is a key facilitator in all team transactions, making the buying or selling process as stress-free as possible for the client. Mara learned many of her extraordinary organizational and problem-solving skills during her service in the Israeli Defense Forces, where she earned the “President’s Award” for exceptional service. In the military, Mara solidified her abilities to achieve top results in high pressure and time sensitive situations. In her spare time, Mara enjoys skiing, photography and writing.

Comment (1)

  1. Nice blog….Continued trouble in the housing market in the form of falling home prices has the federal government considering expanding its mortgage aid programs to include homeowners that are further underwater than is currently acceptable under federal guidelines…

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