39.7%
39.6%
Options for Distressed Homeowners With Negative Equity
Today’s homeowners are benefiting from the red-hot housing market, which is sending property values through the roof. On average, homeowners across the country scored a $26,000 bump in home equity in 2020, according to CoreLogic.
Depending on where you lived, those gains were substantially higher—California, Idaho and Washington averaged $50,000 in home equity increases annually. Meanwhile, states like North Dakota, Iowa and Oklahoma saw considerably lower equity lifts with an average of $9,000 year-over-year.
For homeowners who can no longer afford their mortgage payments, the amount of equity in their home can mean the difference between selling for a profit and facing foreclosure. Generally, homeowners need 10% or more equity in their home to cover closing costs, plus any overdue mortgage payments.