Quote:
Originally Posted by Krimson X
No surprise, here. I thought it would be more than 25% underwater. I dont think the ARM loans have anything to do with it. Most of those came to term 2 years ago, and many of those borrowers foreclosed or refinanced. I do not think banks would still be offering them today.
Most of the underwater mortgages are due to the decline in home prices. I bought my home in 2006 right after Hurricane Katrina, and prices were slightly inflated do to the influx of new buyers to the area. Refinacned last year at an extremely low interest rate. If I sold my home today, I would do so at a loss.
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I agree. Most of the ARMs have be dealt with already. Those with conventional mortgages are suffering from the market taking a dump. I don't think I know anyone who's house is not under water to some extent. Even a friend who bought something recently at 50% less than the high point got an assessment at a lower value than he bought it at and he bought it as a foreclosure at a steal.