According to Zillow, 10% of all homeowners are 90+ days delinquent on their mortgage payments. That equals out to owing $1.2 TRILLION more than the value of the homes. It’s a staggering number. Over 30% of homeowners owe more than their house is actually worth, making them “underwater.”
Zillow’s data covers nearly all mortgaged homes – 50 million of the total 53 million. While there is some discrepancy about the numbers between Zillow and Corelogic, the bottom line is the data points to overall problems for the economy and an increasing debt load. Negative equity raises the possibility of default, especially when coupled with factors like high unemployment or underemployment. Negative equity means a bigger challenge when relocating or refinancing. There is a broader vulnerability that is like a domino effect.
Read the full article here.
