Underwater mortgages flood a California community
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A stunning cover story in the New York Times today looks at the Central California community of Mountain House, where a record number of owners have seen the value of their homes fall below what they owe on their mortgages:
Because of plunging home values, almost 90 percent of homeowners here owe more on their mortgages than their houses are worth, according to figures released Monday. That is the highest percentage in the country. The average homeowner in Mountain House is ‘underwater,’ as it is known, by $122,000.... First American CoreLogic, a real estate data company, has calculated that 7.6 million properties in the country were underwater as of Sept. 30, while another 2.1 million were in striking distance. That is nearly a quarter of all homes with mortgages. The 20 hardest-hit ZIP codes are all in four states: California, Florida, Nevada and Arizona.
An accompanying graphic takes a closer look at the three counties that account for 13 of those hardest-hit ZIP Codes. Among them is Riverside County, where in San Jacinto 92582, 77% of all mortgages have negative equity; Lake Elsinore 92532, 71%; Winchester 92596, 70%; and Perris 92571, 69%.
-- Lauren Beale
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