The Affairs Organizer Blog

The New York Times website has in interactive map that shows where homes across the US are worth less than the mortgage debt.

Click on the map’s upper-left to view on a state-by-state basis:

(1) the percent of homes with negative equity;

(2) the number of homes with negative equity; and

(3) ratio of mortgage debt to property value

A related article by David Streitfeld about Mountain House, Calif. reads: “This town, 59 feet above sea level, is the most underwater community in America. Because of plunging home values, almost 90 percent of homeowners here owe more on their mortgages than their houses are worth, according to figures released Monday. That is the highest percentage in the country. The average homeowner in Mountain House is “underwater,” as it is known, by $122,000.”

It continues later: “The Martinezes bought their house in early 2005 for $630,000. It is now worth about $420,000. They have an interest-only mortgage, a popular loan during the boom that allows owners to forgo principal payments for a time. But these loans eventually become unmanageable. In 2015, Mr. Martinez said, his monthly payments will be $12,000 a month. He laughed and shook his head at the absurdity of it.”

Thanks to David Streitfeld for an interesting article.