11 Million in US Lag on Mortgages
While many economic experts in the United States and across the world are predicting an end to the global recession that first gripped the world back in 2008, the optimistic picture may take some time to take shape, they warn. In the US, the administration of President Obama is a different era for home owners and definitely shows signs of a changing world. Currently nearly 11 million people are behind on their mortgage payments despite tax credits that can be up to $8,000 per mortgage holder and were designed as a way to prop up the housing market. The added stress of unemployment at record levels currently has given rise to a combination of situations that see many facing foreclosure as things get out of hand. While this means a loss of opportunity for some who had not planned for the current situation, it is exactly the opposite for those who have been looking to get into their own home despite credit woes. The current crop of 11 million home owners termed ‘under water’ due to the value of their mortgage exceeding the value of their home will be moving out and this means their houses will be for sale to be financed at much more reasonable rates, consistent with current home values.
Market conditions, negative or favorable, always have two opposite impacts. For those seeking an opportunity to change, say analysts, a negative market for housing means lower prices and easier lending terms. This is seen as a premonition of a housing market upswing as those who were forced to foreclose will also be looking for a new home that is closer in value to what they will be paying.