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Portfolio Realty is a premier real estate firm serving Virginia, Maryland and Washington DC. The DC metro area real estate market demands high levels of skill, proficiency and knowledge. Whether you are eager to buy your first home, sell your nest egg, invest or relocate to the area, it is important to protect your investment by working with a local market expert.
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Underwater Mortgages

Underwater Mortgages Northern VirginiaAccording to a report by First American CoreLogic, more than 23% of people with mortgages owe more on their property than what they’re worth.  Another 2.3 million homeowners are within 5% of being underwater.  What does this mean?  It means that those homeowners will have to stay in their homes for a long time until the market bounces back.  Even then the amount these borrowers owe will not cancel out the home’s value.  It may sound like a lot of people are underwater, but the majority of these homeowners purchased within the past 5 years.

Underwater mortgages by states:

  1. Nevada: 65% of homeowners are underwater
  2. Arizona: 48%
  3. Florida: 45%
  4. Michigan: 37%
  5. California: 35 %

Those of you that are thinking about throwing in the towel should explore your options.  Talk to a Realtor® about entertaining a short sale.  If you have no other choice but to foreclose on your home, it may not be as bad as you think.  Credit agencies realize that foreclosures from 2004-2010 should be weighed differently than foreclosures from 1984-1990.  This kind of real estate market comes around once in a lifetime.  Although it is a big hit to your credit when you go to rent and buy a car, analysts are predicting it will not ruin you forever.