Albuquerque Homes Underwater

The Los Angeles Times had a big article on the dilemna of homeowners whose mortgage is greater than their current home value. Essentially they are stuck. If they continue paying the mortgage it's a waste of sorts unless they stay there long enough to see the value rise again. If they foreclose or walk away, their credit is wrecked for years. They don't qualify for Federal refinancing is they haven't lost their jobs and they can't refinance because the house won't appraise. It's a mess.

So i wondered what our situation was here in New Mexico. Turns out we have stronger equity in NM. Fewer homes are underwater here because we didn't see a big bubble and haven't depreciated very much. Whewww!! That's a relief. Granted some homeowners can't sell because the home would sell at the current market value and they wouldn't have the money for closing costs. But most will at minimum breakeven if not make a buck or two. Only 14% of our homes are near negative values. Many of those can refi or foreclose so few are in that no win bind.

I have been doing lots of short sales which is a great alternative in that the house is sold but usually the short sale is not reported to credit or tax agencies. Well, it's not a great alternative but a less onerous one. Call me if you want to discuss your situation. I'll find a way.