Brace for a Wave of Foreclosures, the Dam is About to Break
Monday, August 17th, 2009 Foreclosure Trends by DaveVW32-37% Of All Mortgage Holders Are Stuck, Unable To Sell
“ California has $2.4 trillion in mortgages debt. 42.0% of the properties have negative equity. Think Wells Fargo (WFC) sitting on its massive share of California pay-option-arms is “Well Capitalized”? If so, think again.
Now take a look at that last line again. Nationwide there is $10.1 trillion in mortgage debt. 32.2% of the properties have negative equity, another 5.4% are nearly underwater. Counting real estate commissions of 5% or so, 37.6% are effectively underwater right now.
Unless those people bring equity to the table at closing, those mortgage holders are stuck in their houses, unable to sell.
And the situation is about to get worse. It will only take a small drop in the Case-Shiller home price index to put a whopping 50% of mortgage holders underwater, stuck in their houses, unable to sell.”
Read more here: http://globaleconomicanalysis.blogspot.com/2009/08/brace-for-wave-of-foreclosures-dam-is.html