The falling value of homes at the end of the year put many homeowners in the position where they owe more on their homes than they are worth. The number of people who who have negative equity is around 22.5 percent of homeowners according to CNBC online and by the end of the year that number is expected to increase by 10 percent. This will affect the already struggling real estate market. With home values in the negative people will be reluctant to purchase homes will affects the mortgage financing markets.
The markets hit hardest by negative equity are also markets where there are a large number of foreclosures such as Arizona, Florida, California and Nevada. One big issue of negative equity is the risk that more people will walk away from their homes and seek the advice of a foreclosure attorney. When a home goes into foreclosure it drives down the value of homes in the entire market area. Negative equity has devastating effects on the real estate market as a whole.
The more prices and unemployment rise the more homes go into foreclosure. For numerous people it is easier to walk away from their homes with aid from a foreclosure lawyers. Sacrificing a home over meeting basic needs for food and energy will take precedent over keeping property that has lost its value. Foreclosure lawyers assist many homeowners in letting go of the money traps that many homes have become.
