‘Underwater’ Mortgages Sink New Yorkers
(Wall Street Journal) — New York state homeowners whose properties are worth less than their mortgage balances tend to be more underwater than borrowers in any other state, a reflection of high home prices and high leverage. A report by real-estate data provider CoreLogic Inc. found that underwater homeowners in the state owed an average of $129,007 more on their homes than the homes were valued during the first quarter. That compares with a national underwater average of $65,000. The total percentage of underwater borrowers in New York is smaller than for the nation as a whole and substantially lower than in states that were hit hardest by the housing downturn, including Florida, Nevada and Arizona.