Homeowners who took out second loans under water

June 14, 2011

Real estate data firm CoreLogic has reported that nearly 40% of homeowners who took out second mortgages are underwater on their loans, more than twice the rate of owners who didn’t take out such loans. According to Federal Reserve Board data, home owners took out a total of $2.69 trillion from their homes at the height of the housing boom between 2004 and 2006. Approximately 11 million Americans, who borrowed to buy their homes or 23% of all homeowners with a mortgage nationwide, were underwater in the first quarter 2011.