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Real Estate & Mortgages: Why Care About Negative Equity?

Just because you owe more on your mortgage than your home is worth doesn't necessarily mean that you are no longer able to afford your mortgage. For many Americans who bought their homes during the housing boom, little has changed for them financially other than what the appraiser has determined on paper.

What has changed are attitudes, and attitudes can be dangerous.

22.5 percent of U.S. borrowers were in a negative equity positionon their homes at the end of Q3, according to a new report from CoreLogic .

That is actually an improvement from Q2, but only because many severely underwater homes went into foreclosure in the quarter, thereby taking them out of the pool.

The authors of the study warn that deteriorating home prices now will likely push the percentage back up in Q4. » Read More

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