Skip to comments.Approx 1/4 of Mortgages Underwater by $766B
Posted on 08/27/2010 1:05:15 PM PDT by ExxonPatrolUs
From CoreLogic Real Estate News and Trends
23% of mortgaged properties (11 million) were under water by $766 billion at the end of the second quarter of 2010 An additional 2.4 million had less than 5% equity That makes 28% negative or near negative 5 million borrowers are in severe negative equity and defaults will be high for an extended period Top 5 states: Nevada 68%, Arizona 50%, Florida 46%, Michigan 38%, California 33%
Good thing we fixed this. LOL
And they expect to be bailed out no doubt. I may be heartless but I say NFW!
Hang in there, God bless.
And if accurate market condition appraisals are made, The percentage underwater will zoom up much higher.
I expect this to be the October Surprise.
“Congratulations! You are now the proud owner of a free house. I’ve forgiven half your student debt, and I’ve capped interest on your Master Card at 10.99%. Vote Democrat!”
I aree. Bush shoveled 700 billion to them and Obama probably a trillion. They invested the money in T Bills at 3% and backstopped their losses. They can sit on that investment...plus a large inventory of homes that people have lost or walked away from. I agree that they should not get any more bailouts.
Investment properties here in my FL beach community are even worse off.
Almost all sales are shorts or by banks. Ten cents or less on the 2006 dollar are common.
What is left unspoken in the statistics is that most of the distressed properties in AZ and FL are/were out of state owned. I estimate 75% of them here are from the Atlanta metro area.
I’m with you in Florida , if I get any money I’m buying beachfront at 20% or less of the 2006 price.. My house is in Orlando and is down about 55% from the peak and 35% from my cost basis.
I don’t think there is a property over $300K anywhere in the US that isn’t upsidedown.
Ah, that’s the bad thing. I know several couples who are underwater. It’s not that they didn’t put substantial down payments on their property...or bought excessive houses for their salaries. But the houses have lost so much value, that they won’t appraise out for a refi...and the banks are totally unwilling to work with them since their current on their payments. So they have to stick at the higher interest rate instead of taking advantage of the low rates.
Orlando made the list of housing markets that will never recover.
And in Florida there’s a huge backlog. I know of a property and the owner died 2 years ago. No immediate family, and the house was underwater, so the other relatives didn’t want to take over the responsibility. So 2 years later it sits empty, and the bank hasn’t foreclosed yet ( it’s a nice upper middle class house, in a nice neighborhood.) The neighbors are the ones keeping up the outside...for appearance sake of the neighborhood.
Also heard from someone who works in the local foreclosure courts that there’s a 20,000 home backlog in our area. Prices, in Florida, at least, are going to go lower.