Where Homes Are Worth Less Than the Mortgage

[RedEarth]

In 43 states, First American CoreLogic was able to analyze data for all homes with mortgages. Using estimates of current property values, the analysis shows that many homeowners owe more on their mortgages than the homes are now worth, a condition known as having negative equity. Move the cursor over a state to see the percentage of mortgaged homes with negative equity. Also shown is a statewide estimate for the total value of mortgaged homes compared to the total mortgage debt on those homes; the higher that number, the more indebted a state's homeowners are in relation to the value of their property.

http://www.nytimes.com/interactive/2008/11/10/business/20081111_MORTGAGES.html

A Town Drowns in Debt as Home Values Plunge

MOUNTAIN HOUSE, Calif. — This town, 59 feet above sea level, is the most underwater community in America.

Because of plunging home values, almost 90 percent of homeowners here owe more on their mortgages than their houses are worth, according to figures released Monday. That is the highest percentage in the country. The average homeowner in Mountain House is “underwater,” as it is known, by $122,000.

A visit to the area over the last couple of days shows how the nationwide housing crisis is contributing to a broad slowdown of the American economy, as families who feel burdened by high mortgages are pulling back on their spending.

Jerry Martinez, a general contractor, and his wife, Marcie, an accounts clerk, are among the struggling owners in Mountain House. Burdened with credit card debt and a house losing value by the day, they are learning the necessity of self-denial for themselves and their three children.

No more family bowling night. No more dinners at Chili’s or Applebee’s. No more going to the movies.

“We make decent money, but it takes a tremendous amount to pay the mortgage,” Mr. Martinez, 33, said.

First American CoreLogic, a real estate data company, has calculated that 7.6 million properties in the country were underwater as of Sept. 30, while another 2.1 million were in striking distance. That is nearly a quarter of all homes with mortgages. The 20 hardest-hit ZIP codes are all in four states: California, Florida, Nevada and Arizona.



http://www.nytimes.com/2008/11/11/business/11home.html?adxnnl=1&adxnnlx=1226444547-dE7jDQ0LnQAqYB24PJ3Aww&pagewanted=print

[phantom power]

1. Unregulated economics sure worked out great. Thanks, GOP.

[enid602]

2. odd

That´s weird; when I googled Mountain House, California nothing came up.

[Porschenut1066]

3. Too far under water, need scuba gear.

[muriel_volestrangler]

4. 838,000 hits

http://www.google.com/search?q=%22mountain+house%22++california

[ljm2002]

5. Thanks for sharing...

...now I'm *really* depressed.

I knew I was underwater. Now I know that I'm in the single state with the worst figures overall -- Nevada. Sure there are more homeowners underwater in California, but percentage-wise Nevada beats everyone, even Michigan. And I'm right there -- bought 3.5 years ago, made a reasonable down payment, have been paying principal plus interest, have a decent rate, never took anything out on the equity -- yet here I am, underwater, gurgle gurgle gurgle. Knowing that I have plenty of company is some comfort, but...

Geez. While we're bailing out bankers so they can still get their bonuses this year after running the international economy aground, people like me are expected to just suck it up and hope to hell we can hang onto our jobs.

Here's hoping.