Underwater housing.

[nutforslots]

The term underwater housing refers to homes that people are paying on and owe more than the home is worth. This makes me wonder is this due to the failing real estate market and the fact that homes are selling for much less than they would have or is it because so many have second mortgages?

Clark County made the top of USA Today’s front page on Tuesday — but it wasn’t good news.

The county was recognized as having the most underwater homeowners in the nation, with 71.1 percent owing more on their mortgage than their home is worth.

The USA Today report focused on how the popped housing bubble is affecting one central California county, Merced, where 63.1 percent of homeowners with mortgages owe more than their house is worth, according to the report.

Merced County was behind Clark County on the list, taking third place among of the nation’s most underwater counties.

The article quotes an economist who says Las Vegas is one of 22 metropolitan areas where home prices won’t return to their 2006 levels before 2030, while national home prices will hit that point by 2021.

Well at least now I understand why the bank lady said to hold on to our home for another twenty years. I guess its the only way we are ever going to recoup on our investment.

[vegasrocks]

Isn't it aweful to think so many people make payment after payment on something that they can probably never make their money back on. It's aweful. It has to be an aweful feeling. I bet a lot of those cases are because of the housing bust. A house valued at $100,000 is now selling for $75,000. It's terrible.

[Milburn]

Under water housing is an amazing concept and If it would be possible to make this concept a reality then I am sure it will be a great success financial and scientifically.