Got that sinking feeling? 1 in 4 mortgages now underwater
Filed under: Home, Real Estate, Mortgages
Is America the next Atlantis?It isn't as absurd as it sounds considering the rate at which new homeowners are finding themselves with property worth less than the mortgage financing it.
According to a newly released report from First American Core Logic, 10.7 million mortgages in the U.S. were underwater as of September. Furthermore, an additional 2.3 million people are teetering on the edge, and are within 5% of being upside down on their loans.
I don't know about you, but it doesn't sound to me like the recession is over for these people . . . far from it!The numbers are staggering. Scarier still is that in one state, the number of properties that are 20,000 Leagues Under the Sea or deeper, has broached the 50% number, according to CNN. Perhaps appropriately, that state is the one that houses the city of sin, Las Vegas.
Astoundingly, in Nevada, 65% of homes are underwater, followed by Arizona 48%; Florida 45%; Michigan 37%; and California 35%.
While new reports seem to come out weekly that show glimmers of hope, other data such as rising unemployment, the falling dollar, weak GDP numbers, tight credit, and a collapsing commercial real estate market, doesn't bode well for housing.
That could mean that the 1 in 4 number is likely to climb significantly.
Joshua Dorkin is the founder and CEO of BiggerPockets.com, a real estate information, resource, and social networking portal.
Reader Comments (Page 1 of 1)
11-27-2009 @ 3:42PM
Sonny said...
Harry Reed must be sleeping while the homes in Nevada are going underwater.......How could he let that happen? He is the majority leader in the Senate.......he must surely be responsible for the condition of the mortgages in Nevada. He has had all that stimulus money and 10 months to fix any problem that was there. He needs to be fired and replaced..........he is a weasel of the worst type. He is spineless and speaks out of both sides of his mouth. He doesn't care about anything but himself. Flush the trash...................
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11-27-2009 @ 7:03PM
Nick Johnson said...
Great post Josh! It still surprises me that Arizona is higher than Michigan.
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11-27-2009 @ 10:08PM
peter Giardini said...
Josh,
Great post! Regardless of what the adminstration or the media want to proclaim... this thing is far from over.
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11-27-2009 @ 10:07PM
Joshua Dorkin said...
@Sonny - Harry isn't the only one asleep at the wheel . . . there's an awful lot of people in Washington and in all 50 states who are at fault here, and that includes both politicians and homeowners, amongst others.
@Nick - Thanks, brother! I actually would have thought that Michigan would have held up better. I certainly expected AZ to be high on the list, but those are some serious numbers for AZ, FL, and of course, NV!
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11-27-2009 @ 10:13PM
Joshua Dorkin said...
@Peter - I'm with you on that, as we've discussed on your radio show and over on BP!
Public Enemy put it best: "Don't Believe The Hype!"
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