Housing faces a lost decade leaving millions of homeowners with little or no equity in their homes. One in five Americans with a mortgage owes more than their home is worth and $7 trillion of homeowners’ equity has been lost in the bust. Homeowner’s share of their home value has fallen from 59.7 % to 38.6% in 2005 alone.
The housing bust and the personal tragedy left in it’s wake is weighing heavily on the economy and Washington is doing nothing about it. Policy makers are engaged in self interest bickering while the housing market rots leaving Americans to feel their lives are hopeless.
Banks are holding nearly 500 million homes on their books with 400 million in some stage of foreclosure. With no hope in sight homeowners are turning down jobs in others areas because they cannot sell or rent their homes. New Job applicants are losing job prospects because of recent bankruptcy history.
Maybe there is light at the end of the tunnel. Officials and the housing industry are studying ways and pressuring banks to write down loan balances for borrowers that are seriously underwater. Lower interest rates, government and low interest rate loans are now available to homeowners wishing to refinancing and rent their homes. If you are desperate and underwater on your mortgage check with your lender to see how you can benifit.