“ARMs reset “
I was questioning at dinner tonight how many of those ARMs are for homes that will not have the 20% equity or the 36% income ratio required and will not be able to be approved for a 30-year fixed. I suspect that number is in the millions.
As you would expect, approximations of upside-down home owners are all over the map. But yes, millions of homeowners are certainly upside-down.
Moody’s: 8.8 million are upside-down
http://calculatedrisk.blogspot.com/2008/02/moodys-88-million-homeowners-underwater.html
Goldman and Morgan: 10.5 million
http://poorbuthappy.com/yourthing/post/how-many-northamericans-are-upside-down-in-their-mortgages/
Bloomberg: 15 Million
Seeking Alpha: 14% of all 45 million homes = 6.3 Million
The numbers will get worse as home prices continue to go down. As yet, there is no bottom in sight.