Posted on 02/24/2010 2:58:14 PM PST by george76
More than 11.3 million homeowners -- nearly one-fourth of all Americans with a mortgage -- owe more on their loan than their home is now worth...
More than 10% of people with mortgages owe 25% more than their home is worth.
The number of underwater mortgages increased by about 620,000 from the third quarter... Another 2.3 million mortgages had less than 5% equity in their home, which could be wiped out if home prices fall further.
Underwater mortgages are concentrated in few states: California, Florida, Nevada, Arizona, Michigan and Georgia. In Nevada, 70% of mortgages were underwater. In California, more than a third of mortgages were underwater.
(Excerpt) Read more at marketwatch.com ...
“In Nevada, 70% of mortgages were underwater.”
Some friends of mine in Reno just went bankrupt and dumped their condo. Approx. $50,000 underwater. He was laid off recently, too.
These people wouldn’t be complaining if their homes would be worth MORE than they owe.
Yes the banks weren’t complaining either when they were artificially inflating property values.
“These people wouldn’t be complaining if their homes would be worth MORE than they owe.”
Wasn’t that what they used to call equity? :-)
C’mon home values will ALWAYS rise you know that....:-0
Good point. Mine is paid off but worth less now than two years ago. I doubt that will make the news.
Well,one thing’s for certain...the days of the 0% down mortgage are over.Which is fine by me,at least partially because the last time I applied for a mortgage the standard procedure was 20% down.
Because you are responsible - you need to pay more in taxes. It is only “fair” to everyone else and it is the “patriotic” thing to do according to Biden.
Totally agree. These BS 1% or 5% down or nothing down and you get cash back nonsense plus ARMs with teaser 1% rates were a disaster waiting to happen.
based on REAL world values the number is much worse.
It is just there are people still able to pay these outrageos mortgages. (as in fraud in the inducement based on bank mandates apprasals)
Banks no longer make public their home apprasal formulas.
The effect of the real estate depression can extend well beyond the borders of the states in which the property is located.
Most of the distressed properties in my FL beach community are owned by Georgians. Most of them are from the greater Atlanta area. Several have been recently sold by banks for 10-15 cents on the dollar to the purchase price in 2005-2006. No kidding.
neither would banks.
Their execs would be buying the homes fro their own use.
Which would only be a problem if they had a reason to sell soon... otherwise, it makes ZERO difference.
My wife and I lived on noodles for a year to save the 20% down required to buy our first home.
Others can eat noodles too.
I don’t anymore.
You’ve got that right ,, beachfront is being dumped ,, the banks have to lay out real serious cash to pay insurance and taxes ,, they can’t afford it.
I am gonna argue the other side of the coin. I wouldn’t want to put 20% down on a house now. I will go to whatever length the mortgage company wants to verify my income and credit ... but they are not getting 50 grand off me in this market.
"Fair" sucks.
Sorry about your friends.
Property taxes are still going up as house values are going down.
Worse next year.
There are plenty of those underwater who did put down 20%. Unfortunately, the market went down 50%.
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