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Equity Home Loans Dependent on Your Location

By Nathaniel Hutchinson Business and Financial Expert


According to a report from the real estate tracker, Zillow, approximately 28.6 percent of homeowners are currently underwater on their mortgage loans, an indication that it will be even tougher for those in need of financial relief to secure equity home loans.

Stan Humphries, Zillow's chief economist, blamed the rash of repossessions for the reduction in home values, and predicted a robust foreclosure market to continue to drag property prices down for at least the next two to four years.

Can I still get an equity home loan?

Although Zillow's report casts a dark shadow on the equity loan market, not everyone should take it to heart. Just because home values are down nationally doesn't mean the same is true in your community.

Poor economic conditions tend to lead to more foreclosures, which inevitably add more inventory to the market, which ultimately adds downward pressure to home values. In cities, such as Phoenix, where 66.2 percent of homeowners have negative equity on their mortgages, and Atlanta (58.7 percent), this has been the case. On the other hand, several cities have seen an increase in home values due to strengthening local economies and sparser home availability

If you really need it, you can still land an equity home loan if you live in the right community and conditions are right. The only way to know for sure is to talk to one or more lenders to see if your individual financial standing and your home's value are up to their standards.

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