Real Estate News - 1 in 4 US Borrowers Underwater
Real estate news reported that almost one out of four U.S. borrowers actually has to pay their home mortgage more than the actual amount of their home. This is such a worrisome sign that the recovery of housing and real estate industry in the U.S. could be threatened by a big wave of defaults.
News on the real estate industry states further that almost 10.8 million American households, or 24 percent of the mortgage holders, were actually underwater in the 3rd quarter, and 5.4 million borrowers have mortgages that are around 18 to 20 percent higher that the actual value of their homes as the prices have already plummeted since the beginning of recession.