upside down in their loans
i was pretty amazed by the figures in this article. the study cited estimates that 9.4% of all mortgage borrowers as of september have no or negative equity in their homes, and the figure jumps to 29% of all borrowers who took out mortgages last year. that’s about $800 billion of loans that are upside down.
December 3rd, 2006 at 2:32 pm
What people don’t understand that if you do any kind of cash out refinance, you are now upside down on your origianl mortgage. Negative equity could be a good thing if you understand how to use it effectively. I don’t encourage ANYONE to ever borrower more than their house is worth, soplease be very cafeful of 100% or higher ltv deals.
August 25th, 2007 at 9:53 pm
It has become worse. Foreclosures, Short Sales and Price Reductions are rampant on the West Coast.