Many American home owners have been relieved to see the real estate market, and their home value, rebound from the real estate collapse which began more than ten years ago. At the height of the real estate market crash, many homeowners found that their homes were worth less than they owed on the home. In a recent report from Zillow, the percentage of homeowners “underwater” on their mortgage has finally fallen below ten percent, the first time the number has been this low since the collapse.
However, according to an article published in the Chicago Tribune, by Darcel Rockett, Chicago homeowners may not be feeling the same market rebound. In fact, Rockett states, “According to Zillow’s 2017 Q4 Negative Equity report, the city has the most homes with negative equity of all the metro areas in the country.” A little over 15% of Chicago metro homeowners are underwater on their mortgage. More alarming, about 20% of these homeowners with negative equity owe two times as much as their home value.
Homeowners are faced with limited options when they owe more than their house is worth. They can wait out the market until their home value returns to a value that matches what they owe. However, some homeowners may choose to cut their losses and sell their homes at the current value. Fournier Law Firm can assist homeowners with the process of a short sale. Contact us at 630-792-1000 or firstname.lastname@example.org
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Photo Credit: ANNA SZLACHTA