Going From Zero to Negative Equity in Oh My Gawd!
See the guys at Bubble Track for more about the home debtors with zero to negative equity and a whole lotta debt.
Also a blurb about it can be found here in the Golden West/Wachovia Story.
"A full 29 percent of people who took out mortgages or refinanced in 2005 have no equity or negative equity in their homes, according to Christopher Cagan of First American Real Estate Solutions, a data provider."
"That's a shocking figure, compared with 10.6 percent of people who took out mortgages in 2004. "I would not want to be one of those people," says Mr. Cagan."
"Many investors and economists are deeply concerned, of course, about excessive home-price appreciation in California and slackening lending standards. The option ARM could be making things worse."