(WSJ) Number of 'Underwater' Borrowers Is Down but Remains Elevated, hindering the housing market

Nearly 10 million U.S. households remain stuck in homes worth less than their mortgage and a similar number have so little equity they can’t meet the expenses of selling a home, trends that help explain recent sluggishness in the housing recovery.

At the end of the first quarter, some 18.8% of U.S. homeowners with a mortgage””9.7 million households””were “underwater” on their mortgage, according to a report scheduled for release Tuesday by real-estate information site Zillow Inc. Z +3.48% While that is an improvement from 19.4% at the end of last year and a peak of 31.4% 2012, those figures understate the problem.

In addition to the homeowners who are underwater, roughly 10 million households have 20% or less equity in their homes, which makes it difficult for them to sell their homes without dipping into their savings.

Read it all.

Posted in * Economics, Politics, * International News & Commentary, America/U.S.A., Economy, Ethics / Moral Theology, Housing/Real Estate Market, Personal Finance, Politics in General, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, Theology