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)
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.