Tuesday, March 8, 2011

Mazi's Link O' the Day

Depressed housing prices are still causing pain around the nation. Last quarter, the percentage of homeowners with negative equity INCREASED from the quarter before. In real estate terms, equity is defined as the difference between the market value of the home and the amount still owed on the mortgage. In essence, it is how much one would receive after he sold the home and paid of the mortgage. Negative equity is fairly self-explanatory, and it should not e difficult to fathom why being in such a position is bad news. Add on to this that home prices are expected to decline another 5 to 10% this year, and we've got a nasty little stew:

http://www.calculatedriskblog.com/2011/03/corelogic-111-million-us-properties.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+CalculatedRisk+(Calculated+Risk)

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