The city of St. Louis is still plagued with a large number of homeowners whose mortgage value exceeds the property value.
Most of these distressed homeowners are victims of poor mortgage terms, where they were locked in at a low rate which rapidly increased after just a few years.
The St. Louis Areas Most Affected
The St. Louis areas affected most by these homes are Bellefontaine Neighbors, Berkeley, Spanish Lake, and Jennings, where it is being estimated that over half of the mortgages held by homeowners in those neighborhoods are higher than the home’s value. What the study also showed is that many are sticking it out in hopes of being able to pull out ahead as home prices continue to rise.
An Effort to Raise Home Values
One misconception is that these homes are not being well kept or maintained by the owners, where in fact in many cases the opposite is true. These homeowners are anxious to see property values in their neighborhoods rise in order to take advantage of refinance options with lenders like Better Rate Mortgage. To do so, you will find that they are making additions to their homes and upgrades in a concerted effort to bring up home values.
These efforts seem to be paying off. Since March, property values in most of these areas has risen, giving the distressed home owner hope that they will soon be in the clear. Those who have waited out the storm and had no plans on moving will benefit the most as the prices continue to rise and they can finally qualify for a refinance. For those that will want to move, obtaining a Better Rate Mortgage TBD mortgage will be made easier without the black mark of a foreclosure or short sale on their credit report. They will not only at least break even from the sale of their formerly distressed home, they will be able to pre-qualify for a mortgage with terms that are easier to live with.
Access to Refinancing Options
With access to FHA and Fannie Mae mortgages, Better Rate Mortgage can help these homeowners who have been living with the consequences of difficult mortgage terms. We are able to provide refinancing services with fixed rates and both 15 and 30 year terms as well as secure monies for new home purchases through the Better Rate Mortgage TBD mortgage program. What is great about these loans is that you are approved based on your ability to pay, not on the value of the house. This allows you to enjoy the pleasure of new home shopping without the worry of denial with the lending company.
While the news of so many homes still under water in the St. Louis metro area may be disturbing, there is continued hope that those numbers will soon begin to decline. With new employment opportunities coming to the city and a continued trend in rising home values, these homeowners may soon receive their just reward for sticking it out. Call Better Rate Mortgage at (314) 361-9979 for more information.
Photo credit: woodleywonderworks via Flickr