In a report released by the Federal Reserve Bank, a "home ownership gap" is explained and explored. And a new term is coined. Knowledge of this gap is important for Mediators and all parties and their Counsel in Residential Mortgage Foreclosure Mediations.
The "home ownership gap" is explained as the gap that remains after subtracting the percentage of homeowners who owe more on their mortgages than their home is worth ("homeowners under water"), from the official percentage of home ownership in a given locale according to statistics released by the Federal Reserve Board. The percentage of homeowners under water comes from the Case-Shiller Home Price Index.
Some home ownership gap figures using this measure:
Tampa Bay:
67.6% official Federal Reserve Board home ownership rate.
-51.2% homeowners under water
= 16.4% home ownership gap.
Miami:
22.5% home ownership gap.
And then, there is the home ownership gap in Las Vegas, Nevada, after this mechanism is used:
43.9%.
The FRB report also contains this description of homeowners under water: "renters in waiting". If home ownership gaps are in such high percentages, can Residential Mortgage Foreclosures and Mortgage Insurance Claims be far behind? They seem to be results that should be anticipated after looking at these measures.
The phenomena of "home ownership gaps" are explored in an informative and thought-provoking post on "Ventures Blog" published by the St. Petersburg Times Online on Friday, June 11, 2010, written by Robert Trigaux.
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