One-Quarter Of All U.S. Homes Worth Less Than What Is Owed

Online, November 19, 2010 (Newswire.com) - A staggering number of U.S. homes are "upside_down," one of the terms used to describe a mortgage loan situation where the appraised value of the home is less than the amount of debt remaining on the mortgage loan. The depressed housing market is causing a ripple effect to spread across other sectors of the economy - most obviously in the area of employment, where many workers who would relocate are opting not to because they are unable to sell their home without taking a large financial loss.

Pre-qualify for small business loans of up to $5 Million.

According to a survey conducted by First American CoreLogic, almost a quarter (10.7 million homes) of all U.S. homes under mortgage loans were worth less than the debt owed on them near the end of last year and an additional 2.3 million mortgages were approaching "negative equity" as loan defaults continue to occur. And, while some analysts contend that the recession has already ended, a December survey of 46 economists predicted that unemployment will fall only 0.8 percentage point to an average of 9.2 percent in 2011 - an unpleasant reminder of the impact one area of the economy can have on another. Small and new business financing may continue to become easier to obtain, especially from non-traditional lenders as the economy strengthens.

The historic ability of the American worker to relocate, which helped the U.S. recover quickly after previous deep recessions, has become another victim of the housing slump. About 12.5 percent of Americans moved in the year ended March 2009, the second-lowest ever, according to an estimate by the Brookings Institution, a conservative nonprofit public policy "think-tank."

The economy is making slow progress - and, although better economic news can mean better prospects for those who are seeking new positions, many of the new positions will require an outlay of cash in the form of relocation costs. Many companies have scaled back programs that reimbursed new hires for such expenses, forcing applicants to finance their own expenses by using savings or obtaining loans.

To learn more about small business loans and personal loans, click here.