Underwater on a mortgage? The pool is getting crowded
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There’s a comprehensive report online at Reuters on ‘underwater’ mortgages. In case you nodded off for the last several months, that’s where you owe more on your mortgage than your house is worth. It’s a math crisis nearly 1 in 6 people are facing.
‘In Stockton, California, a town that has become a posterchild of the U.S. housing crisis, Zillow.com said nearly every homeowner who bought in 2006 is now underwater. ‘There are countless other trouble spots across the country. ‘Nationwide, for those who purchased U.S. homes since the beginning of 2003, nearly one in three now have negative equity. Nearly half of buyers who purchased in 2006 are underwater.’
It’s that old domino effect at work:
‘Already, U.S. consumer spending is slumping as homeowners find they can no longer take equity out of their homes to fund their lifestyles.’
-- Lauren Beale
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