Report: Highest Percentage of Seriously Underwater Loans in Q3 Originated During Housing Boom

first_img in Daily Dose, Featured, Market Studies, News Home / Daily Dose / Report: Highest Percentage of Seriously Underwater Loans in Q3 Originated During Housing Boom  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago The highest percentage of residential mortgage loans that were seriously underwater in this year’s third quarter were originated during the housing bubble between 2004 and 2008, according to RealtyTrac’s U.S. Home Equity & Underwater Report for Q3 2014.RealtyTrac reported that about 15 percent of all residential properties with a mortgage in the U.S. were seriously underwater in Q3, meaning the combined loan amount secured by the property is at least 25 percent higher than the property’s estimated market value. About 40 percent of the mortgage loans originated in 2006 were seriously underwater in Q3 2014, the highest percentage for any year after 2004, according to RealtyTrac.The number of Q3’s seriously underwater mortgages that were originated in the years following 2006 has declined steadily with each year before inching back up in the last two years. The percentage of seriously underwater mortgages in Q3 originated in 2007 was 35 percent; in 2008, it was 25 percent; and for every year, it declined until hitting a low of 7 percent in 2012. The percentage of mortgage loans originated in 2014 that were seriously underwater in Q3 was 10 percent.Meanwhile, the highest percentage of equity-rich homeowners, which are those with at least 50 percent equity in their properties, were those who bought or refinanced their homes between 1994 and 1998, according to RealtyTrac.The highest percentage of seriously underwater homeowners in Q3, according to RealtyTrac, were those that owned homes that were worth less than $200,000. About 55 percent of homes worth less than $50,000 were seriously underwater in Q3, while only 10 percent of homes in that price range were equity rich. About 34 percent of homes in the price range of $50,000 to $100,000 were seriously underwater, while 13 percent were equity rich.Homes worth more than $200,000 had lower percentages of seriously underwater homeowners and higher percentages of equity rich homeowners in Q3, according to RealtyTrac. For example, about 6 percent of homeowners with homes worth between $500,000 and $750,000 were seriously underwater, while 31 percent of homeowners with homes in that price range were equity rich. Servicers Navigate the Post-Pandemic World 2 days ago October 27, 2014 908 Views Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: equity rich properties RealtyTrac Seriously Underwater Mortgages About Author: Brian Honea Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. The Best Markets For Residential Property Investors 2 days ago Previous: Optimism Among Home Sellers Declines in Q3 Next: DS News Webcast: Tuesday 10/28/2014 equity rich properties RealtyTrac Seriously Underwater Mortgages 2014-10-27 Brian Honea Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Report: Highest Percentage of Seriously Underwater Loans in Q3 Originated During Housing Boom Subscribelast_img read more

LeaseLock raises $52M for security-deposit alternative

first_imgLeaseLock founders Reichen Kuhl, Derek Merrill (Photos via LeasLock; iStock/Illustration by Kevin Rebong for The Real Deal)The pressure is on to ditch rental security deposits.California-based LeaseLock is the latest startup to raise money for a security deposit alternative, pocketing $52 million from investors, the company announced Wednesday. The Series B was led by Westerly Winds, a London-based firm started by founding partners from BlackRock, and Wildcat Venture Partners.SoftBank Ventures Asia also participated, along with Vertex Ventures US, Liberty Mutual, American Family Ventures, Moderne Ventures, Strata Equity Group, Veteran Capital and Mucker Capital.Founded in 2013, LeaseLock offers insurance to landlords, replacing the need for a traditional security deposit. The product is integrated into a property management system for multifamily owners and managers. Renters can choose between three plans, starting at $19 per month to cover a $2,500/month apartment.Read moreRhino raises $95M and eyes IPO NYC pushes for security deposit alternatives Is it time to ditch security deposits? Share via Shortlink TagsrentalsRhinosecurity deposit Message* Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlinkcenter_img Email Address* There is an estimated $45 billion tied up in security deposits, according to industry sources, a problem that a slew of startups has tried to tackle in recent years.“The market is shouting for a better solution to upfront housing costs,” LeaseLock’s co-founder and president Reichen Kuhl said in a statement. The funding will let the company double down on its security deposit product, and create new insurance and payment tools.In the wake of the pandemic, the company said demand for affordable housing paired with a consumer cash crunch caused a spike in demand for its product.In 2020, LeaseLock quadrupled the number of homes on its platform to 1.5 million. Customers include Greystar, Cushman Wakefield, Goldman Sachs, Harbor Group and others.Founded in 2013, LeaseLock received $1 million in seed funding in 2016 from American Family Ventures, the VC arm of the $12 billion insurance giant. It closed a $10 million Series A in 2018.It’s one of several startups pitching security deposit alternatives, along with The Guarantors, Rhino, Jetty and Obligo.In November, Obligo raised a $15.5 million Series A from investors including 83North, 10D, Entrée Capital and Viola Credit.Last month, Rhino raised $95 million from Tiger Global Management, Kairos and Lakestar. The round, which valued Rhino at $500 million, is likely to be the final one before the company goes public, co-founder Ankur Jain said.Rhino charges renters a small monthly fee to cover an insurance policy for landlords. For a $1,000/month apartment, the monthly fee would be $5.Contact E.B. Solomont Full Name*last_img read more