Here are some interesting numbers for our market. According to Corelogic, as of September 15, 2015 there are still 4,400,000 households that have negative equity of 20% or more.
In other words, they owe more on their mortgage than their house is worth.
You probably thought we were past the negative equity problem except in isolated metros, cities, towns, etc. Unfortunately for the underwater families, that is just not the case.
The good news is, Home Today™ and our investors can help. Families with negative equity on their home are the perfect candidates for our Short Sale Repurchase program. We can now purchase their home through a short sale, then rent it back to them until they are ready to repurchase it back from us in three years.
What’s in it for them? First of all, they get to stay in the home they love, even after their short sale. Second, they essentially eliminate their negative equity through the short sale.
The homeowners’ bad news now becomes their good news. Now, will all 4,400,000 want to participate in, or qualify into, our program? No. (And, last time I checked, our real estate fund didn’t have $880 billion to help them all anyways.) But, that still leaves a big market of families out there that could benefit from our program.