Even if you have a stable job and can pay your mortgage, your house might not be safe from a dip 'underwater.' Look around to see whether your house is at risk.
With so many borrowers "underwater" -- or owing more on their mortgages than their homes are worth -- the risk is high that they'll default and their homes will go into foreclosure.
Negative equity 负资产 is the product of several factors. The most significant weight is the broad and persistent decline in home values.
The continued decline of U.S. home prices will contribute to rapidly rising rates of negative equity. The most obvious implication is for mortgage defaults.
Current homeowners, or those shopping for a home and who are concerned that they'll end up underwater, should consider how long they expect to live in their homes.
Being underwater doesn't affect homeowners unless they plan to sell.
Whether you're at risk for falling behind may have more to do with the economy and your neighborhood than your job, your credit or your income. Here are four warning signs that you're heading underwater.
1. Foreclosures in your neighborhood
The quickest way to end up underwater is to live in a neighborhood that's plagued by foreclosures.
As homes go into foreclosure, they create a domino effect, lowering home values throughout a neighborhood in a cascade beyond homeowners' control.
2. Homes lingering on the market
When "For Sale" signs linger in a neighborhood for three or more months, that may mean buyers and sellers can't agree on a price. In that environment, homes are unlikely to sell unless the sellers lower their asking prices.
The time on the market is always a good barometer of demand for homes and for the price homes are transacting at.
The longer it appears that neighbors are taking to sell their home the more likely it is they're not getting the price they want and that prices are falling.
Compare the time it took for homes to sell in your neighborhood three years ago versus today; if it's taking weeks or months longer to sell, the prices homes can fetch are dropping.
3. Increasing unemployment
In most cases, the cities where homes have lost the most value during the past year also possess the highest unemployment rates.
4. Homes in disrepair
Dented siding, peeling paint and broken porches could be signs that neighbors are having trouble making ends meet and can no longer pay to take care of their homes, Or they may have gotten an appraisal and discovered their homes have dropped in value and are no longer worth the cost of repairs.
As the condition of homes in your neighborhood worsens, home values almost inevitably drop.
The mere fact that they're not investing in their homes will affect you too.
http://articles.moneycentral.msn.com/Banking/HomebuyingGuide/4-signs-your-home-value-could-drop.aspx
