The US is now at a point where almost one homeowner out of five owes more on their house than what it is currently worth.  Experts say that this may reach a statistic of one and four houses very soon.

There are now about 18% of homes in the US that have negative equity in their house and this percentage can increase as housing prices continue to plummet.

These statistics include 43 states and Washington D.C.  The seven states that have been hit the hardest are Arizona, California, Florida, Georgia, Michigan, Nevada and Ohio.  Experts explain that most of the nation is not in this same condition.

This is more of a regional issue which many people forget.  Some states are getting more stable like Michigan and then there are some states that have homes that are way over priced like in Florida and Nevada.  New York may soon be added to the list of seven states.

Lenders are now stepping up and not waiting for their clients to contact them.  They are contacting their clients to offer to modify their home mortgage.  The goal being that the terms will help lower the principle of the loan or at least adjust the interest rate either of which will lower a homeowner’s monthly payments to hopefully a more affordable rate.

Experts explain that states that have a large number of homes with a negative equity are in this state because they had a very quick increase in their house appreciation as well as many of these homes had subprime mortgages.

Loan modification may be the best solution for you if you find your home in this same situation.  If you work with someone who has negotiated with lenders before, you are more likely to see a significantly better result.

It also helps to have advice from a Debt Negotiation Attorney as your advocate working with the lender on your behalf.

Tags: attorney, debt, negotiation