Sunday, August 9, 2009

UBS Report : Drowning in Debt – A Look at "Underwater" Homeowners

Nearly half the nation's mortgage borrowers will soon owe more on their mortgages than their homes are worth, according to a new report.

An Deutsche Bank analysis of the battered housing and mortgage markets estimated that 25 million borrowers, representing 48% of all Americans with mortgage loans, will plunge underwater before home prices are expected to stabilize in the beginning of 2011.

"If our home-price forecast is correct, roughly one in two mortgage borrowers and one in three homeowners will owe more than their home is worth," said Karen Weaver, one of the researchers who authored the report. "That's a dramatic shift from the past several decades when housing was the foundation of middle class wealth."

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