Is there any data on "underwater" mortgages for those who put 20% downpayment (loan, refinance)

[aneftp]

I've been reading lots and last I heard 1 in 7 home owners are "underwater" in their mortgages. I even read somewhere that as many as 1 in 5 homeowners are underwater if they had purchase their homes in 2005/6.

Can some direct me or tell me if there is any data for people who actually put down 20% downpayment for their homes. How many homes are underwater if they had put down at least 20%.

I'm having an argument with my finance industry friends who are still insisting that I should have put as little down as possible and have the freed up money to dive into the stock market because the stock market values are considered low at this time. I keep on buying BAC stock and $15/$8/6 all seemed like good guys in 1000 quantities and its like I'm catching a failing knife in the stock market these days.

[The_Mo's]

I put 20% down on my house when I purchased and I would be very lucky to break even if I sold today. Getting any of my original 20% back looks bleak. Sad thing is that I have to move in 8 months (job related) and will be forced to rent my house for a few hundred less than my mortgage.

Tough times indeed. My positive thinking is hoping that over then next two years we see a rebound to atleast the 2006 prices. If not the future is scary to consider since it's unlikely I'll be returning to this location as my primary residence.

[aneftp]

I just think its very unfair that people who put little or no money down or do a cash out refinance may get "bailed out" themselves with the cram down proposals by the Democratic Congress.

I am not sure what to do with the responsbile homewoners such as yourself who may stand to lose a significant portion of their savings while those who were irresponsible with their finance either find it easier to walk away or get favorable standings by Congress.

[The_Mo's]

Originally Posted by aneftp

I just think its very unfair that people who put little or no money down or do a cash out refinance may get "bailed out" themselves with the cram down proposals by the Democratic Congress.

I am not sure what to do with the responsbile homewoners such as yourself who may stand to lose a significant portion of their savings while those who were irresponsible with their finance either find it easier to walk away or get favorable standings by Congress.

We are in 100% agreement. Our nation is quickly becoming a "nanny" one for the ignorant. Make a poor financial choice - no worries Uncle Sam will bail you out. I would never expect a bailout or Government aid. Purchasing a home is a personal choice and when ever a large sum of money is involved there is usually some risk we must assume. Housing prices will eventually rebound though, we just have to wait it out. Just because I bought at a bad time doesn't mean we have to sell at one.

To the people who purchased more than they could afford and used a ridiculous loan need to suck it up and learn their lesson! In the future they will make better decision's because of it....