.....that there are over 11 million "Underwater Homeowners"?
Approximately 23% of homeowners with a mortgage presently owe more than their home's value. A total of $750 Billion of negative equity. Close to another 2.5 million homeowners have less than 5% equity...and with home prices continuing to fall, well you know what that means.
Negative equity is concentrated in the hardest hit states: Nevada (65 percent), Arizona (51 percent), Florida (47 percent), Michigan (36 percent) and California (32 percent). The consensus among housing watchers is that home prices will fall another 5 to 10 percent this year before slowly climbing back. That means negative equity will climb approximately another 10%.
Should we care if these "Underwater Homeowners" continue to make their mortgage payments each month?
Negative equity will also slow the pace of home sales...can't trade up, forcing lenders to ask for higher down payments...
Negative equity also increases the risk of Strategic Default.
Peace in the Neighborhood is possible with Mortgage Note Reduction!