Stimulate Housing Sales, Save Equity, $15,000 For All Owner Occupied Buyers Today
A report from Deutsche Bank was recently released: The European bank reported that the percentage of U.S. homeowners that owe more on their mortgage than their properties are worth will rise to 48% by 2011. Up from 25% in March or 2009.
Analysts Karen Weaver and Ying Shen stated price declines will have the biggest impact on prime loans which are two thirds of all mortgages. 40 plus % will have negative equity by the first quarter of 2011. An estimated 46% of prime jumbo loans will be negative up from 25% as of q1 2009.
Also, 69% of subprime loans will be underwater in 2011 and 89% of option arms.
By 2011 negative equity will climb to 90% in parts of California, Florida, Nevada and Arizona.
