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Disappointing News for Many Chicago Homeowners

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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 info@fournierlawfirmltd.com

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Photo Credit: ANNA SZLACHTA

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Rising Home Values Means More “Equity Rich” Homeowners

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For the past four and a half years, the median prices of homes in the United States have been increasing year over year.  This positive news, coupled with the fact that home owners are making the choice to own their properties longer, has helped more and more home owners become “equity rich”.

business-1-1246320The findings from a report released by ATTOM Data Solutions revealed 23.4% of home owners are considered equity rich, meaning they have a loan-to-value of at least 50%.  In fact, the number of homeowners with at least 50 percent loan to value ratio increased by 2.6 million from the third quarter of 2015 to the third quarter of 2016.

According to an article written by Kelsey Ramirez, published by HousingWire.com, the amount homeowners who fall into the category of “seriously underwater” is smaller than last year at this time.   Specifically, the number of homeowners with a loan-to-value ratio of more than 125 percent decreased by 854,000.

Just as the real estate market varies in markets across the U.S., trends for homeowners’ equity or lack thereof vary based on geographical locations.  More equity rich home owners are seen in locations such as San Jose and Los Angeles,  as well as Honolulu and Pittsburgh.  Conversely, in locations such as Las Vegas, Cleveland, Toledo, and Detroit, there is still a large percentage of home “seriously underwater”.

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Photo Credit:  Svilen Milev

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