Not only are 14% of homes in Santa Clara County worth less than the debt on the property, 27% of houses purchased in the last five years are underwater according to the San Jose Mercury.
In my practice I’m seeing a substantial number of long time homeowners who have refinanced loans that are either now larger than the property value or whose loans will soon reset to payment levels that will be fatal to continued home ownership.
This problem is huge and requires immediate attention. Without a solution, the mortgage morass will drag down all the homeowners around the currently underwater homes.
