Underwater Homes Increase
The Wall Street Journal has an interesting story on “underwater” houses, those where the amount of the mortgage exceeds the value of the residence. It estimates that 1 out of 3 homes now fit this category. The article goes on to say that:
…borrowers who owe 30% more than their homes are worth are far more likely to walk away from their property than those who owe just 5% or 10% more and expect prices to rebound.
It’s important for local governments to consider the implications on the housing stock in their communities in light of this trend. The article can be found at:
Categories: Foreclosure
