Bankruptcy Knoxville

It’s a staggering statistic. One in four mortgages is currently underwater, meaning the value of the home is not high enough to pay off the amount owed on the home. In order to sell the house, the homeowner would have to pay the bank to take it back, not to mention all the fees for realtors and title companies. Some states are skewing this statistic higher, such as Florida, Arizona, and Nevada where a full 65% are worth less than is owed. It seems everyone has a story about this housing crisis. A story on Total Bankruptcy reports the following:

The situation has hit new homeowners in the past few years, especially those who were paying interest-only mortgages as their home values declined.

However, this is no longer the case, as a whopping 23% of all home mortgages—10.7 million households— are underwater, according to real estate information company First American CoreLogic.

5.3 million of those homes are tied to mortgages worth least 20% more than the home’s value.

The hardest hit states include Florida, Arizona and Nevada, where 65% of mortgages have negative equity—nearly three times the national average.

Negative equity can become a financial disaster for homeowners, especially if it means turning down a promotion or job transfer because they cannot sell their home.

Are you in a similar situation? Do you need help getting out of an impossible mortgage situation? We can help. Call the Knoxville bankruptcy attorneys you can trust for a free consultation with an attorney. We’ll explain your options and get you back on your feet. Call us today!