A new report on still-falling home prices today highlights the fact that the lower those prices go, the more American borrowers fall into an negative equity position; that is, they owe more on their mortgages than their homes are worth.
Most analysts will tell you that negative equity is the number one problem in the housing market today, even worse than foreclosures, because it causes foreclosures, stymies consumer spending and traps potential home buyers and sellers in place.
10.9 million homeowners have mortgages underwater according to a new report by CoreLogic. In Q2, 22.5% of all residential properties with a mortgage are in negative equity i.e. owe more on their mortgages than their home. Just sligh... Read Post
In Q3, 14 million or 28.2 percent of American homeowners were in negative equity – in which a borrower owes more on their mortgages than their home worth – according to the latest negative equity report from Zillow.The number is act... Read Post
1.4 million borrowers moved to positive equity (where homeowners owe less on their mortgage than their home is worth) in the year through the end of Q3. This is according to CoreLogic's latest negative equity report. But a whopping ... Read Post