David Kirkpatrick

November 25, 2009

Almost a quarter of all mortgages under the water line

Ouch. This economy just doesn’t look or feel any better right now. I just had a major project for this year — a project on standby for around five months — move into the “not likely to happen” file. At least I’m ahead of the game on my mortgage.

From the link:

In a sign that more foreclosures could be on the horizon, 23% of people with mortgages owe more than their home is worth, according to a report released Tuesday.

Almost 10.7 million U.S. mortgages were “underwater” as of September, said research firm First American CoreLogic.

Another 2.3 million homeowners are within 5% of negative territory, the report said. The two figures combined comprise almost 28% of all residential properties with mortgages.

Negative equity, also called an “underwater” or “upside down” mortgage, has become more common as home values plummet. The report is closely watched because borrowers who are underwater are more likely to be foreclosed.

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