U.S. homeownership reaches 15 year low due to foreclosure and unavailable credit

Due to the sluggish economy, high unemployment and a strong rental market, homeownership in Alaska and other states have reach its lowest level since 1997.

According to data from the Census Bureau, homeownership dropped to 64.5 percent in the first quarter this year. The last time homeownership hit that rate was 1997, and it peaked at 69.42 percent in 2004 during the housing boon. The western states are seeing the lowest rates of homeownership where it is at 59.9 percent.

Paul Diggle, a property economist for London-based Capital Economics Ltd., told Bloomberg News, “Although housing prices and mortgage rates have fallen to a level that makes buying preferable to renting, ongoing problems accessing mortgage credit are preventing many households from taking advantage.”

The inordinate number or foreclosures along with tight credit are keeping people from buying a home and instead are renting out more properties. Potential buyers are reluctant to take out mortgage loans after seeing many homeowners go underwater.

Owning a home is a key component to the American dream but so many homeowners are losing their property to foreclosure. In some circumstances, an Alaska foreclosure attorney can help a person prevent eviction from their home.

The laws differ in all states which is why any Alaska resident who has been served with a default notice should consult with a foreclosure lawyer immediately to detail the alternatives to falling into foreclosure.

Your Alaska foreclosure attorney can begin working on your case immediately and offer alternatives  to losing a home such as a short sale or mortgage modification.