While the overall economy might be doing better than it was five years ago, that does not mean that everyone is doing well. In fact, some are still struggling greatly and living from paycheck to paycheck. They are in trouble on their mortgages. In fact, more than 55,000 homeowners in the San Diego Country area are underwater on their mortgages. More than 12% of the homeowners are underwater. This means that they owe more on their properties than those properties are worth. While this number is down from the previous year, where it was 21%, it’s still not great news for those who are in trouble.
Some of the San Diego communities that have the biggest problems with underwater mortgages include Oceanside, Otay Mesa, and Chula Vista. In these cases, many overpaid for their homes – tract homes for the most part. They also had loans that did not require a large down payment. Some did not require a down payment at all. This caused people to buy beyond their means. Some of those people went on to lose jobs during the recession, which made things even worse.
What does this mean? It seems that the market will have many underwater homes for a number of years. This means financial trouble for those who are in this situation. It can seem like there is nothing they can do and that there is no way out for these homeowners, but it is important not to lose hope. It’s possible to find ways to get back on track financially. One of those ways might be to file for bankruptcy. If you are looking for help, make sure you get in touch with a qualified attorney to learn more about the options you have, so you can do the right thing and get back to financial prosperity.