black…MYstory

…can’t catch the rhythm of the stroke/
Why should I hold my breath/
Feelin’ that I might choke…/

-Aqua Boogie, Parliament

Are you underwater?  If you’re a homeowner paying a mortgage in America today, there’s a 20% chance that you are.

Yesterday, a report issued by First American CoreLogic is saying that some 20% of those of us still paying mortgages owe more than the home is worth.  Right now, this means that this is affecting some 8.3 million us mortgages. I knew the number was high but, I was unaware that it was this high.

We have not hit the bottom yet.  CoreLogic also reported that another 2.2 million have homes worth only about 5% more that their mortgage value.

I know Ohio, where I live, has challenges but, just look at some of the other places impacted:

Nevada has the highest proportion of mortgage-holding homeowners with negative equity, 55 percent, the report released today states. About 15 percent of District homeowners who owe money on their homes are “underwater,” compared to nearly 20 percent of Virginia homeowners and 13 percent of those in Maryland.

Fortunately (and finally), the Obama administration is moving its focus from just bailing out Wall Street to formulate a plan and target funds towards helping homeowners in trouble.

This move is expected to help some 9 million homeowners.

Nonetheless, I say grab a bucket and start bailing or learn to swim.  A lot more of us are going under.

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Riddle me this — if the economy is doing so well, why are home foreclosures going up? I mean, if there is so much money going around, am I left to believe that people, in record numbers, are just choosing not to pay their mortgages?

The real estate information company, RealtyTrac Inc., of Irvine, CA, has released its foreclosure figures for the time frame of September 2006-September 2007 and the findings are disheartening. For the month of September 2007, alone, 223,538 foreclosures were filed. Then number for September 2006 was 112,210, which just missed doubling last year by a mere 882 filings. RealtyTrac did say, however, that this number was lower that August 2007 — in that month 243,947 foreclosures were filed.

However, the company is also saying that, despite September’s numbers being lower than August’s, this should not be seen as an end in the cycle of foreclosures. With the rates on adjustable rate mortgages increasing, it would be expected that more will lose their homes due to an inability to afford the higher mortgage payments.

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