1 in 6 Homeowners "Under Water"

Posted on October 8, 2008 3 Comments

Wow. Just how deep does this thing go? The Wall Street Journal says:

“The relentless slide in home prices has left nearly one in six U.S. homeowners owing more on a mortgage than the home is worth, raising the possibility of a rise in defaults — the very misfortune that touched off the credit crisis last year.”

Read it here.

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3 Responses to “1 in 6 Homeowners "Under Water"”

  1. Tanja
    October 8th, 2008 @ 2:41 pm

    I know this article sound horrible, but I’m convinced that this housing slump will stop and things will go back to normal, prices will rise eventually. If you do not need to sell your house these days just stay put and things will get better (not in the next week or so but in a few years for sure) if you are in the market to buy a house, boy you are a lucky person. I have a friend who just purchased $210,000 for $175,000. The house had ¾ of an acre of land, seller paid all of the closing fees and changed the roof (house is built in 1996). This is what I’m saying unless you need to sell your house things will get better.

  2. MEG
    October 10th, 2008 @ 7:24 pm

    I don’t understand why that should increase the liklihood of defaults. Who cares if you owe more than it’s worth? How do you even KNOW how much your house is worth unless you get it appraised regularly? Unless you HAVE to move and sell your house, none of that matters.

  3. Whitney
    October 13th, 2008 @ 10:44 pm

    Whitney from Zillow.com here. It’s fascinating how many people are in total denial about their homes. We recently did a survey and found that over 60% of homeowners believe their home’s value has increased or stayed the same in the past year. in reality 77% of U.S. homes actually declined in value. Pretty scary, considering all the news coverage lately about falling home values.

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