Wednesday, August 5, 2009

Nearly half of mortgages seen underwater by '11 - That's not good! reports the percentage of U.S. homeowners that owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March as home prices continue to fall, Deutsche Bank said. Home price declines will have their biggest impact on "conforming" loans that meet the underwriting guidelines of Fannie Mae and Freddie Mac, the bank said in a report. Of those conforming loans, 41 percent will be "underwater" by the first quarter of 2011, up from 16 percent at the end of the first quarter 2009, it said.

This is a remarkable stat - if true. What does this mean? The pain ain't over for banks that's for sure. Do you feel like walking away from your house...many will.

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