Foreclosure has been an overriding concern for many homeowners since the housing bubble burst in 2007. According to housing analyst data, Ohio has been listed as one of the states with the greatest percentage of deeply underwater foreclosures occurring. Fortunately, these foreclosures appeared to have been declining in December as we are seeing more homes described as being rich in equity. Hopefully this trend will continue.
Still, with high rates of negative equity foreclosure is more likely to be triggered when an event such as job loss occurs. Property is described as being deeply underwater when the homeowner owed 25 percent more than what was the value of the property.
The above data does not include every piece of property that is underwater. In at least a couple of states, deeply underwater property accounted for over a third of the homes.
It makes sense to attempt to prevent a foreclosure situation from occurring when an individual does have equity in a piece of property. On the other hand, there may be certain circumstances when letting the home go is the best option. This can be true if there is negative equity in the home or if the house has some structural problem that would be extremely costly to remedy.
Every homeowner will wish to make the correct decisions when it comes to one's property. Before taking any steps, a homeowner facing foreclosure should speak to attorneys who understanding the foreclosure process and who can provide a variety of legal options for clients.
Source: The Washington Post, "In 15 states, deeply underwater foreclosures still reign," Niraj Chokshi, Jan. 13, 2014