Though nearly 11 million borrowers are still underwater on their mortgages, home equity loans are again on the rise. Rising home prices and higher consumer confidence are combining to again lure homeowners into home equity loans and lines of credit. There was a 19% jump in originations of home equity loans at the end of last year. Rising prices carried around 1.4 million borrowers above the underwater mark through the end of September 2012. Rising home prices and rising interest rates are expected to encourage more homeowners to jump into the home equity borrowing market in 2013.
Lowest Level of Foreclosures Since 2007
In January, foreclosure filings fell to their lowest level since 2007. Notices of default, scheduled auctions, bank repossessions and other filings fell to 150,864 in January. This was a 7% decline from the previous month and a 28% drop from January of 2012, according to RealtyTrac. California is stated to be the major factor in this overall decline. New regulations in that state dramatically slowed foreclosure filings due to the CA Homeowner Bill of Rights that went into effect in January.
Americans Tapping Home Equity Again
Though nearly 11 million borrowers are still underwater on their mortgages, home equity loans are again on the rise. Rising home prices and higher consumer confidence are combining to again lure homeowners into home equity loans and lines of credit. There was a 19% jump in originations of home equity loans at the end of last year. Rising prices carried around 1.4 million borrowers above the underwater mark through the end of September 2012. Rising home prices and rising interest rates are expected to encourage more homeowners to jump into the home equity borrowing market in 2013.
Lowest Level of Foreclosures Since 2007
In January, foreclosure filings fell to their lowest level since 2007. Notices of default, scheduled auctions, bank repossessions and other filings fell to 150,864 in January. This was a 7% decline from the previous month and a 28% drop from January of 2012, according to RealtyTrac. California is stated to be the major factor in this overall decline. New regulations in that state dramatically slowed foreclosure filings due to the CA Homeowner Bill of Rights that went into effect in January.