Real Estate Stats – California Orange County Upside Down Mortgages
Due to the drop in real estate prices in Southern California market over 102,000 homes in Orange County are underwater. Not literally, of course, the value of these homes is lesser than the mortgage amount owed. Although the numbers are lower than the previous year it’s not an indication of improving real estate market. One of the reasons the numbers have declined is ever-rising the number of foreclosures. Foreclosed homes simply are not counted. Nevertheless, this number represents 18.1% of all Orange County a real estate inventory.
On the national level the number of homes which are upside down on their mortgages is even higher, 23% of all households worth less than the amount of money borrowed, which equates to 11,000,000 households.
The state of Nevada has the highest number of on the water mortgages -68%.
The next state is Arizona with close to 50% of all mortgages.
Florida – 46%. Michigan – 38%. California – 33%.
Close to 4.8 million homeowners in the United States have what it’s called “severe are negative equity” where the home value is worth only 75% or less of the outstanding mortgage balance.
Ironically negative equity is one of the main factors that contribute to the number of foreclosures and foreclosed properties, in turn, are being subtracted from the number of homes with negative equity when statistics on underwear mortgages are being calculated.
Many homeowners are looking to modify their mortgages and some make efforts to divest themselves from plunging real estate through the means of short sales. The increasing numbers of short sales show their popularity as well as help to produce more upbeat statistical analysis as to quarterly real estate transaction numbers.
Upside down mortgages or underwear mortgages are not the worst that is happening to the American homeowners. After all, real estate just like any investment includes elements of risk despite the fact what we were told by the financial advisers for a long time. The bigger problem is the loss of jobs and the replacement of high paying jobs with low paying jobs. Orange County has lost thousands of jobs just in the last quarter. You don’t have to have an economics degree to figure out if there is no job there is no money and if there is no money there is no place that you can call home.
California’s real estate market relies on employment more than anything else; hopefully, our elected officials understand that.
Read about the future of California Realtor Career specifics here
4 Comments
Gene · May 12, 2012 at 4:56 am
No the Realtor cannot rfsuee to sell you the house if you unless you use their bank. In fact they shouldn’t even be suggesting this as it is not legal. Yes, you will have to go thru the whole approval process again with the new bank. Perhaps you need a new Realtor?
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Michael · July 29, 2013 at 12:44 pm
This should piss a lot of pelope off…”I don’t know if anyone has heard of Ted Lui, and what he’s proposing, but I thought I’d post what I found on another board. TED LUI (CA assemblyman) and others on the California banking and finance committee passed a proposal Monday to use money from the Affordable Housing Bond to bail out homeowners who were victims of predatory financing and can’t make their mortgage payments. CALL Ted Lui’s office, talk to Tiffany or Mark, 916-319-2053, and call every assemblyman on the appropriations committee (that’s where it goes to a vote next), and call your local state assemblyman, tell them you don’t want your hard-earned tax dollars going to bail out buyers who overpaid and didn’t read their loan documents, tell them the affordable housing bond money was to be used for affordable housing not for bailouts, call or don’t complain when it happens! Here’s a response that one poster received after calling Mark I gave Mark every completely rational argument I could give, not screaming or yelling, just speaking in a controlled, professional voice, against this bailout idea all he could counter was that’s your opinion , I’m sorry you feel that way , we’ll just have to agree to disagree so there’s no point discussing this , and he just kept going on and on about how many pelope were victims of predatory lending and that was what this was trying to correct. No explanation as to how such lending was predatory, why the ADULTS who signed the loan documents were not responsible for their actions, why it is my problem as a taxpayer, nor why we should reward those alleged predators by making payments that didn’t pencil for the borrowers to begin with. I hope every one on this board calls him and every other assemblyman you have time to harrass, I mean contact. Sounds like a prick, but I’m going to call him tomorrow. Might not help, but it certainly won’t hurt to give this idiot a call. “
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