Although this will not come as a surprise to anyone in Riverside County, house prices nationwide continue to fall according to the Case-Schiller National Index. The national decline of 4.2% in 2011 follows declines at the end of 2010 of 3.6%. As a result of these and other declines, home prices have effectively reset back to 2002 levels, erasing a decade’s worth of equity.
Worse than any decline in the housing market is the fact that there is no sign of a rebound. Because of the decrease in equity and income for many households, this may be the best time to pursue a loan modification with your lender. Through a loan modification, our office may be able to renegotiate the percentage rate and principal balance of your loan so that your monthly payments are more affordable. Additionally, we can convert an adjustable rate loan to a fixed rate for the life of the loan. If you are struggling with mortgage payments or relying on savings or retirement accounts to make up a monthly shortfall, contact our office today.