20% of homes with mortgages have negative equity.
Home prices have fallen every month since Jan.
2007.So, what does it mean?

Housing will NOT rebound until late next year at
the earliest. If you are thinking about buying
home builders like Centex (CTX), KB Homes (KB)
or Toll Brothers (TOL), I would think twice as
the fundamentals of their industry do not look
to improve anytime soon.

With 20% of the market effectively sidelined,
it does not bode well for those hoping to sell
them new homes.

Unless they use the Home Seller Assist program
created by John Alexander and otherwise known
as We Provide The Cash. The no cost ebook can
be obtained at http://www.webuyfastnow.com and
at the live webcast last week they had over
10,000 people attend followed a great Q&A
session.

Register now at http://www.fastbuyerloans.com
and if the server is busy, keep trying as they
will have another record week of attendees.

Almost 20 percent of all borrowers owe more on their
house than it is worth. Recall that about one-third
of all U.S. homes have no mortgage (a novel concept,
no?), so this figure would be about a third lower if
measured across all residential real estate.

At least 7.5 million Americans owe more on their mortgages
than their homes are currently worth, according to a
real estate research firm's report released Friday.

In other words: If they sold their homes today, they'd
have to bring a check to the closing. Ouch.

Another 2.1 million people stand right on the brink,
according to the report by First American CoreLogic.
Their homes are worth less than 5% more than the
mortgages they're paying on them.

Home values in Nevada and some other states rose
particularly high during the real estate bubble
and are now plummeting. So even those who put 20%
down when they bought their home don't stand a chance.

In many bubble markets, home prices got so high
that the only way that many buyers could get a loan
was by using what was called "affordability products."
These included adjustable rate mortgages with rates
that were set artificially low for a few years, until
resetting much higher, as well as mortgages that
required little or no down payments.

These loans left buyers with little equity to begin
with, and when prices dipped, they quickly found
themselves underwater.

When home prices were soaring, the mortgage industry
created "affordability products" so the boom wouldn't
have to end - all with the blessing of economists and
policy makers because we had entered a new era where
"risk" was being distributed with the help of financial
innovation in mortgage securitization and insurance derivatives.