One-third of mortgages in area are ‘under water’

December 1, 2009 by Mimi Miller.

One-third of mortgages in area are ‘under water’ - Industry experts say this isn’t as bad as it may sound. While nearly one-third of Greeley-area homeowners owed more on their mortgage than the home was worth as of September, approximately one in four borrowers nationwide were “under water” on their mortgage. Tom Beck, a senior lending officer with 1st National Bank Residential Mortgage in Greeley, points out that it’s only a problem for homeowners who need to sell right away. For homeowners who can stay in their homes, the equity will improve as the housing market comes back. “It’s kind of like watching our stock portfolios,” he said. “It’s going to go up in value, and it’s going to go down in value, but the key day of when it matters is when you try to sell your house.”
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