• 24
  • March
    2011

Many homeowners who purchased their homes in 2005 or 2006 are struggling to stay afloat financially. These homeowners purchased their homes at the peak prices of the housing boom and right before the housing market began to crash. According to a recent article in the Sun Sentinel, between 2005 and 2006, almost 79,000 homes and condominiums were sold in Palm Beach and Broward Counties.

Many of these home buyers paid little or no money down and now are facing underwater mortgages, or the mortgage is valued much higher than the current value of the property. One couple interviewed by the Sun Sentinel has a mortgage that is twice the current value of their home.

The couple says that they would like to relocate and look for new jobs, but they feel trapped by their current situation. At this time, they are able to make their mortgage payments and avoid foreclosure but do not qualify for a loan modification or refinancing.

According to the Sun Sentinel, property values are still falling and could continue to fall into next year. Many homeowners are feeling trapped in their situations and not sure what to do next. The couple in the article is planning to keep making their payments while hoping that the market begins to improve.

Source:

Homes bought five years ago the hardest to sell (Sun Sentinel)