4.1 million families are still underwater, and we can help!

92% of homes now have equity. Or is it that 8% have negative equity? What does that translate into? 4.1 million homes are still underwater. They owe more on their mortgage than their home is worth. Of course, the good news is that it has been dropping and continues to get better for the housing industry.

Corelogic’s latest reports show that properties with negative equity fell 20.7% year over year. The majority of the properties with positive equity were concentrated in the high-end market. That is, 95% of homes above $200,000 had positive equity with 87% having negative equity at $200,000 and below.

Corelogic’s president and CEO expects home prices to rise at least 5% in 2016.

This is good news and bad news for us. We want to continue to see the home values increase and strengthen the market. The bad news is that we will have fewer customers that are in the situation of needing a Rent to Own. Still, 4.1 million underwater homes is a substantial amount. The trick is finding the people that fit into our program and will be successful.

The following 10 metros had the highest percentage of residential properties with positive equity in the third quarter:

  • Houston – The Woodland – Sugar Land, Texas: 98.2%
  • Dallas – Plano – Irving, Texas: 97.9%
  • Los Angeles – Long Beach – Glendale, Calif.: 95.4%
  • Minneapolis – St. Paul – Bloomington, Minn. Wis.: 94.4%
  • New York – Jersey City – White Plains, N.Y. N.J.: 94.3%

Meanwhile, the subsequent metros had the highest percentage of residential properties with a mortgage that continued to be in negative equity:

  • Phoenix – Mesa – Scottsdale, Ariz.: 14.2%
  • Chicago – Naperville – Arlington Heights, Ill.: 13.8%
  • Riverside – San Bernardino – Ontario, Calif.: 11.4%
  • Washington – Arlington – Alexandria, D.C.-Va.-Md.-W.Va.: 10.8%
  • Atlanta – Sandy Springs – Roswell, Ga.: 9.7%

Source: Corelogic