How many underwater homes hold risky second-liens?
Higher payments coming and average payment spike hits $146 per month
RealtyTrac’s latest report finds that 56% of the 3.3 million Home Equity Lines of Credit potentially resetting with higher, fully amortizing monthly payments from 2015 to 2018 are on properties that are seriously underwater.
A total of 3,262,036 HELOCs with an estimated total balance of $158 billion that originated during the housing price bubble between 2005 and 2008 are still open and scheduled to reset between 2015 and 2018. Of these, 1,834,588 (56%) are on residential properties that are seriously underwater, meaning the combined loan…