If you’re upside down on your mortgage, meaning you owe more than your property is currently worth, don’t fret.
Wells Fargo CEO John Stumpf has been there too, according to his admission during the company’s first quarter conference call.
He told listeners there were times in his life when he was “upside down on a mortgage,” and that if borrowers had a job, they’d stick around and continue to make payments.
Stumpf has a pretty good job – he made $21 million last year, so we’re gonna assume his days of holding an underwater mortgage (let alone a mortgage) are long gone.
Unfortunately, the same can’t be said for the many, many unemployed homeowners in the United States who are deep in negative equity.
It’s one thing to be upside on your mortgage, and another to be $200,000 underwater. In those cases, which aren’t all that uncommon these days, it’ll take a while to get out of the red.
In fact, First American CoreLogic recently noted that many homeowners won’t see positive home equity until 2015.
And Fiserv said markets that experienced the greatest price bubbles won’t see home prices return to peak levels until 2025 or later.