The Denver Business Journal reports that 19% of Colorado home mortgages are upside-down, or the balance of the loan exceeds the value of the home.
Characteristics Of Upside-Down Home Mortgages
According to the Denver Business Journal, most upside-down mortgages share a couple of common characteristics:
- The properties were financed between 2005 and 2008;
- The homes were newly built;
- The homeowners used adjustable rate mortgages;
- The homes were priced at the lower end of the market. Most “underwater” homes have a value 22% below the national average of $270,200.
The Denver Real Estate and Housing Market Health
While 19% of Colorado homes are underwater, 22% of homes in the Denver Metro area homes are worth less than the balance of the loans against them.
On the bright side, Denver and Colorado are performing better than the national average of 23% with Nevada leading the way at 65%.
If you’re a Denver area or Colorado home owner concerned about the your mortgage, there are options for you! If your loan is adjusting in the near future, contact your lender or a mortgage broker to find out about getting into a fixed rate mortgage. If you’re behind in payments and don’t qualify for a refinance at this time, check out this piece on how to avoid foreclosure with many helpful tips and resources available to you.
We like to see people stay in their homes, but that’s not always an option for everyone. If you’re faced with having to sell your current home, even for less than you currently owe, check out our short sale posts and short sale resource on Mile High Urban Living.
