The drastic deterioration of home equity is a well known fact, but it's still amazing when one looks at the numbers. Below is a chart from Goldman that shows just how little equity on average people have in their homes. The loan-to-value ratio is at staggering 93%.
This makes it increasingly easy to for the homeowner to walk away from the house.
Non-agency prime mortgages foreclosure rate computed
by Bloomberg:
Thursday, July 30, 2009
Home equity at historical lows
