Thursday, October 23, 2008

1 in 6 Americans owe more on their houses than they are worth - and the numbers are rising

1 in 5 will be 20%. If you consider this proportion of the American middle class being eviscerated, you can start to redefine the scenario that we've been talking about for the rest of the world. No, not a recession, a major Depression. People who own properties are set to earn pretty good rentals as demand to rent (rather than awnership) is set to increase a great deal.
clipped from
Underwater Mortgages

CAPE CORAL, Florida (Reuters) –
Long before she filed for bankruptcy, Ann Neukomm was "under water" -- she owed more on her mortgage than her house was worth -- a situation more and more Americans are finding themselves in.

As the financial crisis hits Main Street America, nearly one in six U.S. homeowners are finding themselves in the same position, threatening the U.S. economy with a new wave of foreclosures and bankruptcies.

About 12 million U.S. homeowners owe more than their homes are worth, compared with 6.6 million at the end of last year and slightly more than 3 million at the close of 2006, said Mark Zandi, chief economist at Moody's

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