Underwater mortgages rise as home prices fall

[OhioChick]

Source: AP

Tuesday, March 08, 2011, 11:07 AM

WASHINGTON -- The number of Americans who owe more on their mortgages than their homes are worth rose at the end of last year, preventing many people from selling their homes in an already weak housing market.

CoreLogic said Tuesday that about 11.1 million households, or 23.1 percent of all mortgaged homes, were underwater in the October-December quarter. That's up from 22.5 percent, or 10.8 million households, in the July-September quarter.

The number of underwater mortgages had fallen in the previous three quarters. But that was mostly because more homes had fallen into foreclosure.

Underwater mortgages typically rise when home prices fall. Home prices in December hit their lowest point since the housing bust in 11 of 20 major U.S. metro areas. In a healthy housing market, about 5 percent of homeowners are underwater.

Read more: http://www.cleveland.com/business/index.ssf/2011/03/underwater_mortgages_rise_as_h.html

[MedicalAdmin]

1. My house is underwater.

By about 20%. I may keep it as a rental when I leave the country or I may just abandon it, or... heck, I don't know. It's pretty sucky. Oh, and my insurance is skyrocketing.

[OhioChick]

2. I'm sorry to hear this...

:hug:

[MedicalAdmin]

3. I look at it this way.

I'm in good company. There are a million other good solid citizens getting screwed by the fraud perpetrated by Wallstreet. I am a proud member of the class formally known as middle.

And I will proudly not pee on a Wallstreeter if I ever see one on fire.