Underwater? Deeper and Deeper

Underwater houseBloomberg is reporting today that almost 29% of Americans with mortgages are underwater. And in case you’re not familiar with the term, “underwater” means that they owe more on their mortgage than the house is actually worth.

29%. That’s millions and millions of Americans.

Bloomberg reports that, “The number of U.S. homeowners who owe more than their properties are worth climbed in the third quarter as lenders repossessed fewer houses……The share of borrowers with negative equity rose to 28.6 percent, up from 26.8 percent in the second quarter and 23.2 percent a year earlier.”

They go on to say, “That’s putting extreme pressure on households because temporary job losses translate into foreclosures at much higher rates when the household is in negative equity.”

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