More Than 8 Million Equity-Backed Home Owners Resurfacing

Posted by on Tuesday, September 10th, 2013 at 10:07am.

In the next 15 months, 8.3 million home owners — about 18 percent of home owners who have a mortgage — are expected to gain enough equity to be in a better position to sell their homes, according to RealtyTrac’s September report on home equity.  Continued below.

According to RealtyTrac, the home owners have a range of 10 percent negative equity to 10 percent positive equity. Home owners with low equity may face challenges in selling a home due to the cost of the sale and having a down payment on a new home. As equity rises, more home owners are in the position to sell their home without having to resort such actions as a short sale. 

The report also notes that one in four home owners in foreclosure also were found to have positive equity. Daren Blomquist, VP at RealtyTrac said "home owners with equity may have a better chance at selling their homes before letting the foreclosure process run its course." Adding, "that’s assuming they realize they have equity and don’t miss the opportunity to leverage that equity.” Blomquist went on to say “even home owners deeply underwater have reason for hope, with about 150,000 each month rising past the 25 percent negative equity milestone — although it will certainly take years rather than months before most of those homeowners have enough equity to sell other than via short sale."

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