Posts Tagged: underwater

Did Underwater Homes Kill the US Economy?

Did the large number of homes where values dropped below the cost of their mortgages kill the economy during the Great Recession? Wonkblog thinks so. It is widely recognized that the fall in housing prices had a “wealth effect” that led homeowners across the country to cut back on spending. In the updated paper, Mian,… Read more »

One in Ten New Mortgages Already Underwater

More than 1 million Americans who have taken out mortgages in the past two years now owe more on their loans than their homes are worth, and Federal Housing Administration loans that require only a tiny down payment are partly to blame. That figure, provided to Reuters by tracking firm CoreLogic, represents about one out… Read more »

Let’s Make the Banks Write Down Underwater Mortgages

The federal government and state attorneys general, including Washington State’s Rob McKenna, are currently negotiating a settlement with the big banks over foreclosure abuses, with a deal expected within the next few weeks. Unless the public stays vigilant, this settlement could turn into a slap on the hand for Wall Street, with a slap in… Read more »

AZ: State Has Second Highest Underwater Mortgage Rate in Country

Statistics indicating that nearly half of Arizona mortgages are under water brought no surprises to many homeowners who have had trouble selling a home or are fighting foreclosure. Arizona homeowners with reduced equity in their homes face many financial challenges, and the plummeting real estate market in Phoenix has been a major factor. A recent… Read more »

NV: 65% of Homes in State “Underwater”

One of the many real estate issues homeowners in the United States face is negative equity, which occurs when homeowners owe more on their homes than they are worth. It’s a more significant problem here in Nevada than it is in any other state. According to a recent report from CoreLogic, 55.6 percent of all… Read more »