Thursday, March 5, 2009
Underwater in your Mortgage anyone?
This graph shows the percent of households with mortgages underwater by state (and near negative equity defined as with less than 5% equity). As noted above, the largest increases in negative equity going forward will be in states other than California, Nevada, Arizona and Florida.
If we use the two stress test scenarios from the Treasury Department in the following table, then using the CoreLogic data: 1) approximately 17 million households will have negative equity by the end of 2010 under the baseline scenario (in the CoreLogic database), and 2) approximately 23 million households will have negative equity by the end of 2010 under the more severe scenario. go to chart..