Wednesday, August 13, 2008

NEARLY ONE THIRD OF HOME OWNERS OWE MORE THAN HOUSE IS WORTH

Bloomberg - Almost one-third of U.S. homeowners who bought in the last five years now owe more on their mortgages than their properties are worth, according to Zillow, an Internet provider of home valuations. Second-quarter home prices fell 9.9 percent from a year earlier, giving 29 percent of owners negative equity, said Zillow. . . For those who bought at the 2006 peak of the housing market, 45 percent are now underwater, Zillow said. . . Almost one-quarter of U.S. homes sold in the past year were for a loss, Zillow said. That contributes to the foreclosure rate because some homeowners can't absorb the loss and end up surrendering their homes to the bank that holds the mortgage, said Stan Humphries, Zillow's vice president of data and analytics.

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