(Source: The Wall Street Journal) – Almost 40 percent of US homeowners who took out second mortgages — extracting cash from their residences to cover everything from vacations to medical bills — were underwater on their loans, more than twice the rate of owners who did not take out such loans, according to a report released Tuesday.The finding, in a report by real estate data firm CoreLogic, illustrates the consequences of easy borrowing amid the housing boom’s inflated prices. The report said 38 percent of borrowers who took cash out of their residences using home equity loans were underwater, or owed more than their home was worth. By contrast, 18 percent of borrowers who did not have these loans were underwater.

Source: The Wall Street Journal

Updated: Tuesday, 07 Jun 2011, 6:55 AM CDT
Published : Tuesday, 07 Jun 2011, 6:55 AM CDT

To read more, click on this link