Atlantis In America: 20% Of Mortgages Underwater……..(home prices down 27%)
Negative equity problems worsen as mortgage applications continue to fall. Homeowners in the United States still have a long way to go to dig themselves out of the mortgage crisis.
According to a study by First American CoreLogic released Wednesday, one in five homeowners with mortgages owe more to their lenders than their homes are worth. Compounding the problem, is that that rate will increase as housing prices drop in states that have so far avoided the worst of the crisis.
About 8.31 million properties had negative equity at the end of the year, up 9.0% from 7.63 million at the end of September. The percentage of these underwater borrowers rose to 20.0% from 18.0% over that time.
The study covered 43 U.S. states and the District of Columbia.
States such as California, Florida and Nevada were particularly stressed. Along with Arizona, Georgia, Michigan, and Ohio they accounted for 62.0% of underwater borrowers but just 41.0% of mortgages.
Other areas, however, are deteriorating. Connecticut, for example, saw a 25.0% increase in homes with negative equity, while the District of Columbia had a 44.0% rise.
(Excerpt) Read more at forbes.com …
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According to the conservative ideal of personal responsibility, these people f####d up and must become bums.