Categorized | Residential

Number of Underwater Mortgages Rising in Richmond, Virginia

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As if the housing market couldn’t get any worse, the most recent reports show that underwater mortgages are once again becoming commonplace across the country. One of the areas hit hardest by an increase in the number of underwater mortgages is that of Richmond, Virginia.

Nearly twenty-seven percent of mortgages in the Richmond area are underwater or will be underwater in the coming months. That is an increase of over five percent from the previous year.

Those that are struggling the most with underwater mortgages are those that bought their house during the peak of the real estate market. It was between 2004 and 2007 that prices were at their highest, and they have since seen a freefall in value.

Unfortunately for those homeowners looking to sell their homes, prices continue to remain at low levels. That means that most of those individuals will have little chance to recoup the money that they paid for their home in the first place. Experts believe that only those that are willing to hold on to their current home will have a chance at actually recovering the value that they paid for their home. However, there is no clear indication as to how long such owners will have to wait.

As bad as the numbers are in Richmond, Virginia, they pale in comparison to those of Nevada and Arizona. Both states currently have over fifty percent of their homes carrying an underwater mortgage.

Underwater mortgages can still affect those that are not interested in selling their home at this point. With mortgage rates at an all time low, many homeowners are looking to refinance their mortgage loan. However, those with underwater mortgages are restricted from any kind of refinancing.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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