20m Borrowers Could Be Underwater before 2012


More than 14m borrowers were underwater as of Q110, owing more on a mortgage than the value of the underlying property.

But with a further 10.8% decline in house prices expected relative to Q409 levels, another 6m borrowers are likely fall into negative equity by the end of 2011, according to commentary today by Deutsche Bank.

It makes for 20m underwater borrowers total before 2012 according to Housing Wire.

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