One In Six Homes ‘Under Water’

From The Wall Street Journal

The relentless slide in home prices has left nearly one in six U.S. homeowners owing more on their mortgage than their home is worth, raising the possibility a greater increase in defaults.

Having more homeowners under water is likely to mean more eventual foreclosures because it is hard for borrowers in financial trouble to refinance or sell their homes and pay off their mortgage if their debt exceeds their home's value. A foreclosed home, in turn, tends to lower the value of other homes in its neighborhood.

When Your HELOC Freezes Over

From CNNMoney.com

Tens of thousands of homeowners have been shut off from their home equity line of credit (HELOC) as lenders try to stem losses from subprime mortgages.

Not all HELOCs will be frozen or downgraded, but you can be sure lenders will scrutinize every account - including yours.

Thieves Tap Into Home Equity

According to The New York Times, homeowners who have significant equity in their homes may be well-advised to check their credit reports frequently. Identity thieves have recently begun targeting individuals with good credit because they often have substantial untapped home equity and large, open lines of credit.

A home equity line of credit is an ideal vehicle and a favorite option for criminals because a line of credit is almost as easy to open as a credit card account as long as a criminal has the proper financial information of their victim.