The proportion of U.S. homeowners who owe more on their mortgages than the properties are worth has swelled to about 23%, threatening prospects for a sustained housing recovery.

Nearly 10.7 million households had negative equity in their homes in the third quarter, according to First American CoreLogic, a real-estate information company based in Santa Ana, Calif.

These so-called underwater mortgages pose a roadblock to a housing recovery because the properties are more likely to fall into bank foreclosure and get dumped into an already saturated market. Economists from J.P. Morgan Chase & Co. said Monday they didn't expect U.S. home prices to hit bottom until early 2011, citing the prospect of oversupply.

Read it all.

Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Housing/Real Estate Market • Personal Finance • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * International News & Commentary • America/U.S.A.

1. Creighton+ wrote: It is actually much worse than this…if you live in Florida then automatically you are up side down in your mortgage.  This is a real problem for clergy and has been for years as Dioceses have departed from Churches having Vicarages or Rectories…. Of course, clergy went for it because it was the only way to build equity and have any savings…..but today the situation has reversed itself and now it is an impediment to clergy being mobile and able to answer a new call. Time for dioceses and churches to rethink housing. November 24, 8:01 am | [comment link]

2. Chris wrote: this one does not require subscription: More Homeowners Fall Behind on Mortgages http://online.wsj.com/article/SB125865480793156003.html read the comments too, ugghh…... November 24, 8:09 am | [comment link]

Registered members must log in to comment.