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IPFS News Link • Housing

11.3 Million U.S. Properties with Negative Equity: Arizona 2nd with 51%

Negative equity continues to be concentrated in five states: Nevada, which had the highest percentage negative equity with 70 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (48 percent), Michigan (39 percent) and California (35 percent). Among the top five states, the average negative equity share was 42 percent, compared to 15 percent for the remaining 45 states. In numerical terms, California (2.4 million) and Florida (2.2 million) had the largest number of negative equity mortgages accounting for 4.6million, or 41 percent, of all negative equity loans. Click on image for larger graph in new window. This graph shows the negative equity and near negative equity by state. Although the five states mentioned above have the largest percentgage of homeowners underwater, 10 percent or more of homeowners have negative equity in 33 states, and over 20% have negative equity or near negative equity in 23 states. This is a widespread problem.

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Comment by Ross Wolf
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Obama has reason to know his recent nationalization of the home mortgage market will both destroy housing as an appreciating investment and evaporate equity in homes belonging to millions of Americans. The Treasury Dept. recently removed a $200 billion cap on aiding Fannie Mae and Freddie Mac providing each company a taxpayer Blank Check to cover mortgage losses. Because the two companies secure 70% of new home mortgages, that will leave only a tiny number of private mortgage lenders. Meanwhile Rep. Barney Frank is again advocating loans to unqualified-home buyers foreseeable to cause more foreclosures, forcing down home prices and values that support $Trillions in bank mortgages: U.S. taxpayers just spent $billions to prop up banks after the sub-prime mortgage crash. Dropping home selling prices are causing local governments to collect less property tax, forcing layoffs of government employees. Consequently CA and other States are raising income, sales and other taxes to recover lost property taxes.