1 in 5 of Homeowners With Mortgages Underwater!

Corelogic recently put out some data stating that the number of people with underwater mortgages has fallen to 10.8 million down from 11.3 million at the beginning of 2010. This is only an decrease of 500,000 nationwide. Not very much.



Depending on what you read that would mean 22.5 percent of Americans with a mortgage at the end of September 2010 (=48 million), or if take 51 million mortgages that mean 21.12%. Big deal either way that is 1 in 5.

But think of it like this if there are just 75 million owner occupied properties in the US that is 1 in 7 homes underwater.

But remember these numbers do not take into the cost of selling a home which on average is between 5%-8%.

On the good news side a program started in September ran by FHA to help with underwater homeowners. To qualify, borrowers must be current on their mortgages, and owe at least 15 percent more than their home’s current worth. Lenders must agree to forgive at least 10 percent of the homeowners debt. This is mostly likely to help 300,000 homeowners according to Barclays Capitol and 500,000- 1.5m according to the government.

Let us take 500,000 as a figure. That still leaves another 10.3 left in trouble. A number that is more likely to increase over the winter months rather than decrease.