Friday, November 11, 2011

More than 1 in 4 homeowners 'underwater' on mortgages

More than 1 in 4 homeowners 'underwater' as U.S. housing market continues to sink | Mail Online

By MICHAEL ZENNIE, The Daily Mail, 11/8/11


Walking away: The large number of houses 'underwater' could lead 
to homeowners deciding it's no longer worth it to make mortgage payments

Nearly 30 percent of American homeowners owe more on their mortgages than their homes are worth, according to a new report from the real estate website Zillow

Defaults and foreclosures are likely to increase as homeowners decide to walk away from their houses, rather than continuing to make mortgage payments on property they can't sell or refinance, analysts said.

Forecloses are already twice what they were this time last year and the number of homeowners who haven't made a mortgage payment in at least two months rose for the first time since 2009.

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