Sadly wage growth......is not growing so does anyone see a resolution to this "underwater" problem other than time? From Forbes:
A total of 9.7 million American households still have “underwater” mortgages, meaning they owe more on the home than it is currently worth. Homes in the lowest price tier are most affected, according to data released today from Zillow.
Thirty percent of homes in the bottom price tier are in negative equity, while only 18.1% of homes in the middle tier and 10.7% in top tier are underwater, according to Zillow’s Negative Equity Report. Homes are defined as top, middle, or bottom tier based on their estimated value compared to the median home price for that area. (Nationally, the median price in the top tier is $306,700; middle tier, $163,400; bottom, $98,400.)
Overall, 18.8% of homeowners were underwater during the first quarter of 2014.
Zillow’s figures for homes with negative equity are higher than other recent reports looking at the same problem.
