Tuesday, November 24, 2009

One in Four Borrowers Under Water

The proportion of U.S. homeowners who owe more on their mortgages than the properties are worth has swelled to about 23%, threatening prospects for a sustained housing recovery.

Nearly 10.7 million households had negative equity in their homes in the third quarter, according to First American CoreLogic, a real-estate information company.

Home prices have fallen so far that 5.3 million U.S. households are tied to mortgages that are at least 20% higher than their home's value, the First American report said. More than 520,000 of these borrowers have received a notice of default, according to First American.

The best loan to value ratios are in:

New York at 49%
Rhode Island at 51%
Hawaii at 52%
Montana at 55%
Connecticut at 57%
Washington DC at 59%

The worst loan to value ratios are in:

Arizona at 91%
Florida at 87%
Michigan at 84%

The national average is 70%

View all states here.

1 comment:

  1. Goldman Sachs subsidiary files flurry of mortgage lawsuits

    A subsidiary of bank holding firm Goldman Sachs filed more than 50 lawsuits in Las Vegas courts against individual homeowners during a one-month span this year. Some local observers say the litigation could signal the beginning of a Wall Street backlash against defaulting borrowers.

    http://www.lvbusinesspress.com/articles/2009/11/23/news/iq_32535823.txt

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