One in Five Homeowners has Negative Equity
Nearly one in five U.S. mortgage borrowers owe more to lenders than their homes are worth, and the rate may soon approach one in four as housing prices fall and the economy weakens.
About 7.63 million properties, or 18 percent, had negative equity in September, and another 2.1 million will follow if home prices fall another 5 percent, according to a report by First American CoreLogic. The data, covering 43 states and Washington, D.C., includes borrowers nationwide, even those who took out mortgages before housing prices began to soar early this decade.
Seven hard-hit states — Arizona, California, Florida, Georgia, Michigan, Nevada and Ohio — had 64 percent of all "underwater" borrowers, but just 41 percent of U.S. mortgages.
Related prior posts:
More homeowners than ever are selling at a loss!
San Diego Real Estate … The Coming Next Wave of Foreclosures
Home Sales Fall In March… Seventh Month In A Row
Home Values Fall in England and Wales
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The government should take draconian measures like a creating a repo market to hide bank losses? Or maybe draconian measures like bailing out home speculators because they might incur a loss?
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OK America Business & Politicians…..it’s time for you idiots to get out of the way of those who have real answers to save the economy. You idiots have been in power too long. You don’t know what you’re doing trying to save those stupid banks and mortgage companies. You’ve screw the American public out of their equity in their homes, that which was driving this economy. Threat was the “ATM†of the consumer. Let OBAMA and his team come on the field and shut down that stupid war, and put plans in place to put America back to work.
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Lenin was (sort of) right! He just didn’t know why. The inherent contradictions in a capitalist society will destroy capitalism as you know it! The oppression and greed of banks will lead to massive dislocations in the economy that will force true economic and social revolution in this country through legalized institutions.
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Mark my words, either Obama or Clinton will win – and the legal changes they bring will force a more equitable distribution of wealth AND risk. First, rebuild the social safety net, shredded by decades of rightwing mismanagement. Second, better government regulation will bring more centralized control back over the markets. As time goes on, the federal government will reassert its rightful authority over more sectors of the economy, and we will march together into a brighter future for our children!
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Those discussing the large drop in home prices that need to happen are failing to mention that the nominal price will not fall that far because Bernake is inflating the market; real prices will fall 30%+, however.
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So how bad is it? I hear all these ramblings, fancy financial terms and so on. But what does it all really mean? Does the US collapse? Do we see soup lines and down trodden people like the experience was during the Great Depression? Seems to me the US financial catastrophe is pretty simple. Our government and the citizens of the US have consistently spent more than they take in. At some point the debt becomes so great we are unable to pay it back, or manage it. When we are no longer able to pay our debts what happens? Do we surrender assets, land and military hardware to the foreign nationals we’ve been burrowing money from over the last two decades? Maybe a fire sale of America? The whole system is a sham and we only have ourselves and those shysters in Wall Street and the Scum of Washington DC to blame..Sorry to say but, neither McCain, Clinton nor Obama will be able to save us from this SNAFU. The concept of uncontrolled spending and deficit through credit has finally caught up with us. This decade is perhaps a time for reckoning in which our short sighted ways and embrace of Wall Street’s psychopathic free market capitalism garnered by greed and unequaled corruption will finally get the best of us..
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And to top it all off—soon to be ex-President George W Bush will be leaving U.S. with a $10trillion dollar debt to be paid with declining home prices. Give me back Clinton’s 90s balanced budget economy any time compared to the nuts currently running Washington.
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Home prices will fall up to 50%, the Fed can’t keep up with the jingle mail folks, cutting rates to 0 = 33% inflation. Poor, poor timing. Jimmy Rogers recently called on Blind Ben to resign, a total screw up.
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If you don’t vote, you may just be Standing in the soup line, instead of proposing just to see people in them. They already exist. Many will need to focus on making a go of it living below their means for a while; these Liars, Killers and Economy Destroyers need to answer to the People. This is a Democracy.
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Clinton’s didn’t have anything to do with a balanced budget. We had $10 $15.00 oil and the Republican Congress lead by my man Newt Gingwich and his contract with America mandated a balanced budget. Clinton also raped the military budget. Don’t forget about their tech bubble that Al Boring invented.
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