Posted on Monday, August 17, 2009
As recently reported by the National Association of Realtors, a new report by Deutsche Bank estimates that by 2011 nearly 50 percent of U.S. home owners with mortgages will owe more than their homes are worth.
This estimate of 25 million borrowers is significantly higher than similar calculations by other economic and real estate analysts. For instance, Moody’s Economy.com projected that 17.5 million will be underwater by early 2010.
If research showing that 26% of underwater homeowners will walk proves true we could be in for a bit longer ride on the roller coaster than many have planned for.