Living in an underwater house

Marketplace Staff Mar 4, 2009
HTML EMBED:
COPY

Living in an underwater house

Marketplace Staff Mar 4, 2009
HTML EMBED:
COPY

TEXT OF STORY

Bill Radke: A study out this morning shows that 1 in 5 U.S. homeowners owe more to their mortgage lenders than their homes are worth, and that that number will rise as the housing slump spreads. Here’s Marketplace’s Jennifer Collins.


Jennifer Collins: It’s no secret that price declines have ravaged the housing market. But a study by First American CoreLogic shows that more and more home owners have negative equity.

Real estate agents often call that “being underwater.” The study shows more than 8 million properties were underwater at the end of last year. That’s up 9 percent from the quarter before.

Experts say 62 percent of underwater borrowers come from six states: Arizona, California, Florida, Georgia, Michigan, Nevada and Ohio. Those borrowers account for 41 percent of mortgages there. New York is in the best shape when it comes to homes with negative equity. Around the country, 20 percent of borrowers are underwater.

I’m Jennifer Collins for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.