Wednesday, March 9, 2011

Over 11 Million Underwater On Mortgages As Housing Plummets

The number of Americans who owe more on their mortgages than their homes are worth rose at the end of last year, preventing many people from selling their homes in an already weak housing market.

CoreLogic says about 11.1 million households, or 23.1 percent of all mortgaged homes, were underwater in the October-December quarter. That's up from 22.5 percent, or 10.8 million households, in the July-September quarter.

The number of underwater mortgages had fallen in the previous three quarters, but that was mostly because more homes had fallen into foreclosure.

Underwater mortgages typically rise when home prices fall. Home prices in December hit their lowest point since the housing bust in 11 of 20 major U.S. metro areas. In a healthy housing market, about 5 percent of homeowners are underwater.


  1. Received an email from my Democrat Senator the other day advertising a Federal Government program to assist certain people that can't pay their mortgage. The income qualifications vary by county, but in San Diego you can have an income up to $98,000 per year. Their defintion of moderate income. Each qualified applicant gets $50,000 for house payments, bringing payments current, buying down the loan etc. You must keep payments current and stay in the residence 3 years. If you do that the money is free. The irony is that the Federal Government gives this money directly to the banks/lenders.
    Who is getting bailed out here again with taxpayer money?

  2. Yeah, and then next year they will be underwater and behind again when the prices drop again...and again...and again.

  3. It's back to jobs, jobs, jobs. If you can't earn a decent salary, or if you have no salary at all, you can't pay for a home.

    I'm still waiting for the Republicans to do something about jobs--and I bet I'll be waiting a very, very long time.


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