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Negative Equity – U.S. vs. Canada

24% of U.S. mortgage holders had negative equity (owed more than their home was worth) at the end of last quarter.

That compares to just 1% in Canada.

Take a look at how U.S. defaults rise as negative equity increases. (Click to magnify)

Pre-Foreclosure-by-Equity It’s interesting how fast defaults start ramping up once U.S. borrowers owe 20% more than their home is worth.  At that point, many people start thinking there’s no coming back and simply walk away from their properties.

Sources: First American Core Logic, CAAMP