Yesterday on this blog we posted about the fact that many homeowners are in denial about their homes value. It seems that a majority of U.S. homeowners think their properties value is immune to the national real estate meltdown.
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Well, this morning a new report was released that addresses the actual facts about how truly staggering the ‘negative equity’ or ‘underwater seller’ epidemic is. This report was created by the researchers at First American Corelogic. “Previous numbers are tough to come by, but it is widely believed that never before have so many homeowners been a negative-equity position; and early data are indicating that borrowers facing negative equity positions are a significant risk of default.”
Here are the highlights:
- 18.3% of all U.S. mortgages are now ‘under water’.
- There are an additional 2.1 million that will soon have negative equity.
- Nearly HALF of all mortgages in Nevada are negative…this number is expected to increase.
- Michigan, nearly HALF will be in negative equity positions soon.
- Florida, 34%; Arizona, 35%; California, 32%; Georgia, 32%…negative equity over 20%!
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I almost didn’t sign up for the REO Coaching class,.. I am a 21 year, Real Estate veteran that started his career in a market very similar to this one. What do they think they are going to teach me,.. these whipper snappers,…
While I don’t know that I have “Learned” alot yet,.. I am being forced to bring old lessons back to the forefront of what I am thinking about.
There are 5 stages of death and or Grieving,…
Denial,… Sadly this is still where some agents and some Seller’s are
Anger,…. This is seen every day right now as one politician points at the other for causing this mess
Bargaining,… How many agents are throwing their services away right now,..
Depression,.. look at the number of agents who are wringing their hands,.. and crying woe is me
Acceptance,… To prove this all we need do is to look at the number of agents who have already thrown in the towel and the number who will in the following months.
I dare say,.. All of us have experienced all of these emotions,.. wanting above all else to return to the days when sales were easy and the market was tight.
The truth is,.. that the market is what it is,.. and that means a new approach,.. a change in business model for many of us,.. it does not necessarily mean harder,.. but it certainly means different,.. and for some old dogs,.. it’s tough to learn a new trick.
Thank You for reminding me,.. that nothing stays the same,.. but each time brings with it, it’s own unique opportunities and that we need to get out of the box we have become so comfortable in.
God Bless Your Day