Note: It was reported a few months ago it was 1 in 8.
Wall Street Journal report says situation may threaten the housing recovery.
WASHINGTON - Nearly one in four U.S. borrowers owe more on their mortgage than their home is worth, a worrisome sign that the housing recovery could be threatened by a wave of defaults, the Wall Street Journal reported on Tuesday.
The newspaper said almost 10.7 million households, or 23 percent of mortgage holders, were underwater in the third quarter, and 5.3 million have mortgages that are 20 percent higher than the value of their home as prices have plummeted since the recession began.
The report cited a survey by First American CoreLogic, a Santa Ana, Calif.-based real estate information company, which said more than 520,000 of the borrowers have received a default notice.
LINK HERE
Best to walk away if youre underwater; it will take years, if ever, to re coop. The lenders knew this would happen; let these bastards repo and sell them at a loss or rent them out...these bankers, mtg lenders are real scum; they can "eat the damn houses"! Laura
ReplyDeleteThis sounds about right. Here in central Texas in my neighborhood alone the cars never leave the driveway...ever. Getting kinda scary.
ReplyDelete1 in 4 Borrowers Underwater soon to morph into 5 in 12 Americans likely to pick up a Torch or Lasso and go after a Banker or Politician.
ReplyDeleteLet's see them print their way outta that one!!
The 1 in 4 borrowers that are underwater on loans are the 1 in 4 who bought inflated priced McMansions. "Commonfolk" homes, 1250 sq ft, are still in sinc in pricing, and in fact even rising.
ReplyDeletePeople who bought what their income will bear are doing fine. The McGreedy's are in trouble. Many builders, who once only built the 250,000.00 dollar and up homes are quickly returning to the Post WWII size homes. It dont take rocket science to figure this out!!!
It is worst than that; it is tied to jobs. 5000 sq ft or a box doesn't matter.
ReplyDelete99% of areas in the US ARE NOT going up home price wise, including 1250sg ft homes. If that is the case in any more than the rarest of instances, show evidence of that please.
Housing is dying a slow death and when the ARM2s hit it is goodbye Sally as the banksters are going to hike mortgage rates to the roof as soon as the Fed banksters make their power play.
Not to mention the pending commercial real estate collapse. The evidence of its start is all around you. Lease signs, plywood over windows. Even in nice neighborhoods around here. Iconic areas. No mercy.
For those wanting to watch a real estate epic fail in the USA pay attention to the grand opening of City Center Las Vegas's 8 billion dollar mistake.
ReplyDeleteSure, it will start out with a bang but fizzle quickly. All involved will lose their investment. The condo pricing got a 30% haircut this week simply because no one is buying or leasing. The only people moving in to the condos were people that put down down payments a year or two back and couldn't cancel without defaulting.
After City Center fails, Vegas is going to really take a dive. As if it isn't bad enough there already. You can get $22 a night rooms there right now. $40/night in some of the top hotels.
The billion dollar casinos are no different than the Ma and Pa corner store that way. Hanging on by their fingernails.
12:13==
ReplyDeleteA new subdivision of 1250 - 1450 sq ft is half up and selling as built or before built here in the SE US. Builders are turning back to sane times. Mall are full, new stores opening in the area.
NOT saying times are good--NO they are not. Not at all. Just not sinking. The SE US is doing fine.
New plants opening--some jobs available, but they are hiring good people, not riff raff and drug heads.
Not great times, but holding own here.