How is it possible that a third of US mortgages are under water?

[Anonymous]

Well, that's a 3rd of homes with mortgages. How many of us have relatives that bought in 1970 and own their houses free and clear? I know many of mine do. Most of America of a certain generation bought their houses and paid them off and have not renovated ever or have paid cash for any updates.

[Anonymous]

We bought at the height of the boom, put over 20% down. Our property has dropped 38% in value and we are slightly underwater. But, we pay more than the minimum each month and are on track to pay off our 30 year mortgage in 18 years, so I'm not overly worried. The market in this area is s tarting to recover and we're not going anywhere for a while.

[Anonymous]

California, Vegas & Florida.

We bought our house in 2003, before the boom in Southern Cal. From 2003 till 2005 it went up in value 150k, then when the market crashed it went down 300k! Now we're only approx. 80-100k underwater. We bought what we could afford and we still suffered the rath. Then we received a job transfer and didn't want to sell. We still own and have had renters for two years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I bought place in 2006. Put 20% down and I'm still underwater by 1/3 of the mortgage amount. I'll never be above water on it.

PP where did you buy? If it's in this area, I bet it will come back eventually

Florida. It's not coming back.

[Anonymous]

I know my brother is underwater in NC. We both bought in 2001 and paid about the same for our houses (about $190k) - he in Durham, NC, me in Rockville. Today I would get about $350k for mine, he had his on the market for a year and couldn't get $175k for his -- tons of short sales and foreclosures in his area putting nice houses on the market for $125k and less.
Honestly I barely know anyone who has a mortgage and ISN'T underwater.

[Anonymous]

Anonymous wrote:Florida. It's not coming back.

Depends on where in Florida. My mother is a real estate saleswoman in central Florida (the Orlando region) and there is still a fair amount of traffic there. The prices are still depressed, but in several years, it is likely to come back. Once the recession really recedes, central Florida will bounce back. They base so much of their economy on the vacation/entertainment industry which is a luxury that takes a hit with the recession. Mickey and friends (and competitors) will never go out of style. People are just waiting to have more expendable income to spend again and then it will come back.

Where in Florida (north, panhandle, central, south?)

[Anonymous]

Anonymous wrote:We bought at the height of the boom, put over 20% down. Our property has dropped 38% in value and we are slightly underwater. But, we pay more than the minimum each month and are on track to pay off our 30 year mortgage in 18 years, so I'm not overly worried. The market in this area is s tarting to recover and we're not going anywhere for a while.

What a smart attitude. It really doesn't matter what the market is, or what you speculate your house is worth, unless you are going to move. If you're going to stay put, the only thing that matters is that you can make the payments.

[Anonymous]

Anonymous wrote:Did you buy all your houses for investment only, PP?

No, to live in. As circumstances change, we moved. My point is that not all of us were/are as fortunate as myself and OP.