With home prices continuing to fall at the national level, a growing number of Americans are now "under water" on their mortgages—meaning that their homes are worth less than what they owe on their loan.
The Wall Street Journal reported this week that almost 1 in every 6 American homeowners is now stuck in this predicament.
From The Wall Street Journal:
About 75.5 million U.S. households own the homes they live in. After a housing slump that has pushed values down 30% in some areas, roughly 12 million households, or 16%, owe more than their homes are worth, according to Moody's Economy.com.
The comparable figures were roughly 4% under water in 2006 and 6% last year, says the firm's chief economist, Mark Zandi, who adds that "it is very possible that there will ultimately be more homeowners under water in this period than any time in our history."
Among people who bought within the past five years, it's worse: 29% are under water on their mortgages, according to an estimate by real-estate Web site Zillow.com.
Bob of OH @ Oct 31, 2008 03:12:07 AM
Jennifer of WA @ Oct 09, 2008 18:41:28 PM