A report from CNN says 25% of homes are what is termed as underwater, meaning that homeowners owe more on their home than the home is worth. This seems to be a more common problem, but many hope that with the economy showing positive signs and improvements continuing daily, home values will rise again making homeowners more confident in their home’s equity.
However, with so many homes seeming to be underwater homeowners are taking different paths during the recovery of the housing market and economy as a whole. Some are looking to take advantage of the $6500 repeat homebuyer tax credit and relocate to a home whose value isn’t far surpassed by what is owed.
Others are looking to simply wait out the housing market and allow home prices and home values to rise again. This is said to be a strategy that is looking more promising as the economy recovers and shows better numbers, but the unemployment problem in the country is what seems to be stalling all area of the economic recovery.
When jobs are back in abundance and people can actually afford homes again the problem of homes being underwater will be resolved and home values will rise. However, the best advice may be to simply wait out the housing problem. Home values will rise again but those who are far gone in terms of their mortgage versus their home’s value may consider the $6500 repeat homebuyer tax credit.
Finding cheap used cars under $5000 has helped numerous families with financial issues. It might be a wise choice to scale back and avoid that monthly car payment if you are struggling with money. Sadly, most people do not know how to do this as they continue to max out credit cards in hopes that things will get better quickly.