11% of Utah home owners are “under water” in their equity to loan mortgage ratio.
Oofff.
This map supports a story in the NY Times about Mountain House, CA:
This town, 59 feet above sea level, is the most underwater community in America
Because of plunging home values, almost 90 percent of homeowners here owe more on their mortgages than their houses are worth, according to figures released Monday. That is the highest percentage in the country. The average homeowner in Mountain House is “underwater,” as it is known, by $122,000.
The tale of woe continues on but I find myself feeling un-sorry for them. They bought at dumb prices using dumb financing techniques.
But don’t worry… I bought my house before the rampant run-up in prices and with a substantial down payment/conventional mortgage at very attractive rates. I can’t rent as cheap as I own. But in today’s America that just means I will be penalized for prudence by paying for the imprudent.
H/T: Dad
November 11th, 2008 at 9:17 pm
Half this problem is solved by renting out rooms to students and singles then resolving to stay in the house until old age. Get the tools and learn to service it all except termites, natural gas, and major public utility connections. Foreclosed? Start over now that you understand (maybe) how a budget prevents foolish disasters. Prudence means rolling over the surplus into the second jumbo CD!