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underwater mortgage

Economists and Homeowners Agree: Strategic Defaults Are Poor Option for Underwater Homeowners

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If faced with a deeply underwater mortgage, most economists and homeowners agree they would not strategically default, according to dual surveys from Zillow Inc. Nearly three-quarters of economists surveyed in the June 2012 Zillow Home Price Expectations Survey (71 percent) said they would not strategically default, even if they owed on their mortgage at least 40 percent more than the current value of their home.Click to continue

Study Finds Nearly One Fourth of All Residential Properties Are Underwater

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CoreLogic has released its second quarter negative equity data showing that 10.9 million, or 22.5 percent, of all residential properties with a mortgage were in negative equity at the end of the second quarter of 2011, down very slightly from 22.7 percent in the first quarter. An additional 2.4 million borrowers had less than five percent equity, referred to as near-negative equity, in the second quarter.Click to continue

Major Servicer Launches New Loan Mod Product to Assist Underwater Mortgage Holders

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Ocwen Financial Corporation has launched a new loan modification program designed to help distressed homeowners who owe more than their houses are worth and, at the same time, mitigate the likelihood of "rewarding" borrower delinquency. Ocwen's Shared Appreciation Modification (SAM) program reduces delinquent customers' principal owed, but also compels them to share some of the appreciation with the mortgage's owner, not the servicer, if the house increases in value by the time they sell or refinance it. Ocwen launched the SAM program on a pilot basis last year.Click to continue