Troubled US Homes

More and more Americans' homes are worth less than the mortgages that they have taken, and may threaten the US economy with another wave of foreclosures and bankruptcies.

This number has increased from 6.6m homeowners last yr to abt 12m now, and is expected to increase with home prices continue to fall. If these houses go into foreclosure, the oversupply of homes will delay housing mkt recovery and add pressure on banks.

Many people got into trouble when they refinanced their mortgages when property values rose, to pull out cash to support their lifestyles; and now with a mortgage worth more than their homes, some choose to walk away and return their keys to the banks.

For those who bought US homes in early 2003, nearly 1 in 3 now have -ve equity; and nearly half of the buyers in 2006 are under water now.

* ST-US Mortgages *