The Most “Underwater” Town in America is…
November 12, 2008
Mountain House, California. Interestingly, Loan Mitigation Advocates happens to be located only 25 minutes from this town. This news is so big that even the NY Times carried a recent story on the unfortunate circumstances facing Mountain House residents. The article states that close to 90 percent of Mountain House homeowners owe more on their mortgages than their houses are worth. This is the highest percentage in the country.
Mountain House is clearly a microcosm of this widespread problem. Many families located in this area and people across the nation are adjusting their spending habits due to the depressing economy and the burden of paying a high mortgage.
“Most people pay very little attention to what their equity stake is if they can make the mortgage,” said First American CoreLogic’s chief economist, Mark Fleming. “They think it’s a bummer if the value has gone down, but they are rooted in their house. When my house is valued at 50 percent less than it was, does this begin to challenge the way I’m going to behave?”
If Mountain House and the impact on the surrounding area are any indication, the answer is yes. Cutbacks by residents are having a dramatic effect on the sustainability of many small business owners. According to the NY Times article, strip malls are tenantless, business revenue is down, advertising in the local newspaper and luxury magazines are sluggish and owners are cutting employees.
If you feel underwater on your home mortgage, please contact us at Loan Mitigation Advocates. We are well-versed in the path to preserve your home ownership, including guidance on your current mortgage with the goal of keeping you in your home. Please feel encouraged to contact us today – we’re ready to help.
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Everyday, struggling homeowners call foreclosure and loan mitigation hotlines for help on how to save their homes. This is just a small sample of a larger problem. Foreclosures, short sales, adjustable mortgages, and financial or personal hardship have wreaked havoc in the marketplace. The need for loan mitigation is paramount.
At Loan Mitigation Advocatessm, we encourage homeowners to try and resolve their situation themselves. In many cases, the homeowner realizes the complexity of the situation and that they do not have the time, connections within the lending industry or negotiation power. This is where many homeowners turn to a loan mitigation advocate. The hiring of a specialist to handle the process from start to finish can ease an already stressed situation, reaping benefits long into the future, and most importantly, help you, the homeowner, stay in your home.
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