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‘Seriously Underwater’ Home Mortgages Tick Up Across the US

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corbe:
‘Seriously Underwater’ Home Mortgages Tick Up Across the US

Alex Tanzi
Wed, May 8, 2024, 11:01 PM CDT

(Bloomberg) -- Roughly one in 37 homes are now considered seriously underwater in the US and that share is much higher across a swath of southern states, according to data out Thursday.

Nationally, 2.7% of homes carried loan balances at least 25% more than their market value in the first few months of the year. That’s up from 2.6% in the previous quarter, according to the first-quarter 2024 US Home Equity & Underwater Report from ATTOM, a real estate data firm.

While the share of these homes is ticking up, it remains much lower than before the pandemic, when the rate was more than twice as high.

Mortgages can generally become seriously underwater when someone overpays for a home, or when it is purchased with a small downpayment that doesn’t provide a sufficient buffer if the property falls in value.

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https://finance.yahoo.com/news/seriously-underwater-home-mortgages-tick-040100261.html

roamer_1:
You ain't seen nothing yet. They tell me my crappy little cabin is worth a quarter million bucks now.

That's just crazy talk. Folks can't afford to buy. especially young folks.

No wonder they're living in ditches.

Kamaji:
Mortgages can also become underwater when valuations drop.

Wingnut:
I see a big buying opportunity like in 08 and 09.  As our user "retread" said this was the Bush crash but while O'Bummer the Joo hater came to office.

banddag:

--- Quote from: Wingnut on May 11, 2024, 12:26:25 am ---I see a big buying opportunity like in 08 and 09.  As our user "retread" said this was the Bush crash but while O'Bummer the Joo hater came to office.

--- End quote ---

Major cracks in subprime market started in 2006.Housing crash started in March 2007. By end of 2007, early 2008 it was full blown. Lehman Bros  collapsed Sept 2008 , 2 months before the Presidential election.

Obama had nothing to do with the housing collapse no matter how much you outright lie about it and try to fool guillable people with revisionist bullsheet
Yes, this collapse happened under the W  Presidency and warnings about subprime were circulating as early as 2005

I know this because my dad built spec homes and I was warning him in 2005-2006 major problems were coming down the pike after talking with very smart  banker friends who knew their stuff.

My dad built his last spec home somewhere that n late 2005 or early Spring 2006

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