Underwater mortgages negatively impact homeowners? attitudes
Posted on Thursday, June 28, 2012 at 4:36:22 PM
Homeowners’ attitudes were surveyed as part of the 2012 Fannie Mae National Housing Survey in the first quarter of 2012. According to the organization’s research, a homeowner is likely to have a negative outlook on their future if their mortgage goes underwater.
The term is used to describe when a home is worth less than the amount owed on the mortgage.
"Results indicate that helping keep mortgage borrowers current on their mortgage is a beneficial goal since the negative attitudes resulting from delinquency for the borrower (and those they influence) may be hard to repair and could evolve into ingrained delinquency behaviors," said Doug Duncan, senior vice president and chief economist of Fannie Mae.
Despite the dire outlook, homeowners can take heart. The improving economy and rising property values may soon right the unbalance. The research showed that the number of Americans with an underwater mortgage has drastically decreased in the past few months. Consider home financing options to attain a lower interest rate on a mortgage and get back on the right track.