Wednesday, February 24, 2010
Another nail in the dollar coffin
New data from First American CoreLogic shows why the solution to the problem banks face is so difficult to find. Eleven million, three hundreds thousand homes had underwater mortgages as of the fourth quarter of last year. That number represent 24% of all residential homes loans in America.The mortgage numbers are much worse when homes with equity of less than 5% are included. First American reports thatÂ â€an additional 2.3 million mortgages were approaching negative equity at the end of last year, meaning they had less than five percent equity.â€ That means that three out of tenÂ homes have virtually noÂ financial value to their owners.