Friday, July 16, 2010

1 in 4 Virginia Mortgage Holders is "Underwater" - Owes More Than the Home is Worth - Virginia is #7 In the Nation

The 15 States With The Most Underwater Mortgages:

Nevada -- 69.9% of mortgages underwater
Arizona -- 51.3% of mortgages underwater
Florida -- 47.8% of mortgages underwater
Michigan -- 38.5% of mortgages underwater
California -- 35.1% of mortgages underwater
Georgia -- 27.8% of mortgages underwater
Virginia -- 24.3% of mortgages underwater
West Virginia -- 23.8% of mortgages underwater
Wyoming -- 23.8% of mortgages underwater
Maine -- 23.8% of mortgages underwater
Louisiana -- 23.8% of mortgages underwater
Mississippi -- 23.8% of mortgages underwater
South Dakota -- 23.8% of mortgages underwater
Maryland -- 22.9% of mortgages underwater
Idaho -- 22.7% of mortgages underwater

Thanks to Humpty for compiling the list from Business Insider's slide show.

The following posts give an idea why so many local mortgage holders owe more than their houses are worth, and why the mortgageholders with negative equity will increase in number.

2010 CAAR  Mid-Year Market Report Showing Slow Sales, High Inventory
The VHDA Review of Current Market Conditions
Lowball Offers and Buying v. Renting
Short Term and Move Up Buyers Exit Market, Prices Remain High, Sales Will Remain Low
An Example of Years Worth Of Mortgage Payments Wiped Out When Prices Drop
2010 Foreclosures Up Dramatically Over 2009


rfs said...

If you some time, take a look at this article. It is just a matter of time before this hits here in C-Ville.

Anonymous said...

Thanks for posting that link.

Humpty said...

Geithner was talking to a real estate forum today and floated the idea of eliminating the real estate tax deduction because the treasury could make up for some of their deficit. Apparently some in the crowd expressed/shouted their concerns that he would be killing residential real estate!

I will post a link when I find one!

John Doe said...

RE tax deduction = $100Billion / year, and Mark Zandi, Moody's chief economist, was advocating axing it....

Anonymous said...

if they did eliminate the mortgage interest tax deduction, you can be sure existing mortgages would be grandfathered and continue taking the deduction. this would cause a huge decline in RE values and sales. so it won't happen. but i wouldn't be surprised if they use it as a threat to get people to start buying again before an imaginary deadline when the deduction will no longer apply for new loans.

jaded said...

They better think long and hard on this one. If you remove the tax incentive (interest write off) you can rest assured that charitable contributions will also nosedive. Of course if prices keep going down, the interest paid on the mortgage will not be enough to equal the standard deduction...

Anonymous said...

Anybody noticed all the relistings on CAAR? some with new prices, some just desperately sticking to their delusion