Report Says That Nearly Half Of Homes In The U.S. Will Have Negative Equity By 2011

Deutsche Bank believes that nearly half of all mortgages will have negative equity by 2011, meaning that they will be worth less than the amounts owed on them. This certainly coincides with the statistics presentd by JMO in our blog post on July 14th (REO's expected to increase an ADDITIONAL 150% IN 2009).

JMO:
This only addresses that nearly 50% of homes will have negative equity. It does not estimate of those properties how many will become short sales, foreclosures and deeds-in-lieu. Of additional concern is how many purchasers of homes in the last year will find themselves in this same "underwater" position. If you are intending on holding onto or acquiring property, please make sure you have a long-term (10 yrs or more) strategy in place that will allow you absorb the "paper loss" you will take.