Nearly 50 Percent of Palm Beach County Mortgages Underwater, and it gets worse from there

Nearly 50 percent of Palm Beach County mortgages underwater or dog paddling like mad

by Kim Miller

A report released today by the Santa Ana, Calif.-based CoreLogic found 44.3 percent of homes _ 147,643 _ in Palm Beach County with a mortgage are worth less than what is owed on their loans. Another 3.9 percent are nearly there.

The condition, known as negative equity, or being underwater, is even worse statewide where 46.4 percent of loans are underwater and 4 percent near negative equity.

That makes Florida third in the nation for underwater mortgages following No. 1 Nevada, which has 65 percent of homes near or already underwater, and second place Arizona with 51 percent.


20 million homeowners did not gather around the dinner table one night and decide to take down the entire global economy.

Did all these “deadbeats” decide to ride “high on the hog” for a few years so they could “live above their means” just to have everything taken away?

Loss of marriage, credit, 401k, job, dignity, etc…

Yea, that’s what they signed up for.

Wake up people. This crisis is so far beyond a “deadbeat” issue. It was a PONZI SCHEME.

And, the most successful one ever perpetrated in the history of the world.

As for the core logic figures, it is actually extremely worse than portrayed.

Their numbers do not take into account of other factors as reported by Mark Hanson today…

Real (Effective) Negative Equity is a much larger problem, as it pertains to housing, than mainstream reports suggest

CoreLogic came out today with their latest monthly negative equity figure of 11.1mm borrower’s with mortgages, or 23.1%. But this number doesn’t mean much to me.

What most don’t consider is real, or effective negative equity, as it pertains to repeat buying I touched upon in the item #2.  Effective negative equity begins at the point at which the homeowner can’t sell the house and rebuy another, which requires paying a Realtor 6% on the sale and putting 10% to 20% down depending on the type of loan needed.

For example, on a Jumbo purchase in CA effective negative equity begins at 75% CLTV, which is the reason the Jumbo housing market continues to languish and will get worse.  In fact, when you lower the CA Jumbo negative equity threshold to 75% CLTV, then 64% of all mortgaged homeowners are effectively underwater.  This is also why I believe that Jumbo loans, a clear focus of banks and servicers with respect to modifications, payment plans and workouts for the past year and a half, have not even begun the pain stage that will ultimately come.

In lower house price states such as AZ and NV where it takes 6% to pay a Realtor and 10% down to move-up, down, or across, when you lower the negative equity threshold to 85%, even a greater percentage are effectively ’underwater’.

When national house prices fall another 10% to 20%, entire states will be consumed by effective negative equity putting even more pressure on real estate supply and demand fundamentals.

Bottom Line: Whether the borrower is at a 95% LTV or a 140% LTV, they are in an effective negative equity position.

So what does Mark think about where we stand now on the Foreclosure Crisis?

Where do we stand now?

In final, I am always asked about my predictions for total Foreclosures stemming from the bubble years.  And I have said the same thing for years.

In short, there have been 3.5 million foreclosures and short sales to date stemming from legacy loans.  There are presently ~7.5 million borrowers delinquent, defaulted, or in Foreclosure at present — grows by 100k to 125k per month — of which 75% to 80% will ultimately be liquidated. If another 7.5 million defaults — and modification redefaults — occur over the next three to five years then a total of 12 million to 15 million Foreclosure, short sale, and deed-in-lieu liquidations will occur, meaning we are now ~25% complete in cleansing the infamous 2003-2007 Bubble-Year’s toxic lending cesspool.

Got that? 15 MILLION foreclosures in the next 3 – 5 years.

Although I do not agree with some of Mark’s views and suggestion, these numbers are staggering.

Doesn’t that tell you something?

It was the biggest transfer of wealth the world has ever seen.

You were scammed and you better so something about it…



47 Responses to “Nearly 50 Percent of Palm Beach County Mortgages Underwater, and it gets worse from there”
  1. I vent…..You are freaking me out…….I just saw your comment on 11-11. I have a story about 11-11…About 20 years ago I kept seeing the time as 11:11…a receipt with total price 11.11, my license plates on car..11-11 (with letters)…this happened all the time…I told my husband about it cause it bothered me after a long time of seeing it. On a trip to Florida I told my family at a gathering of my 11-11 experiences and my niece freaks out…she too had the same experience all the time but never told anyone. When I got back to Michigan I went to a tarot reader but I never told her about the 11-11. Now this reader did alot of Motown singers…and was well I paid a dear price to find out if she mentioned it on tape. One of the cards showed a tower falling with people falling from the building…and she said ..this card in this position tells of danger. As I sit looking calm not to give it away..she tells me to watch for 11-11..I got the chills and I remember shaking…and she said to get the book 11-11 and will tell me what is behind the 11-11. Now many times I have said things before they happened…and every reader pick that up on me….so I go and buy the book..title is 11-11….and I could not follow the made no sense to me…I tried reading it over and over and nothing sunk in…except people dancing in circles…it was like something shut my brain down. After I got the book..I didn’t see 11-11 again for years. I never looked at the book again till I moved to Florida and my niece asked to read it. She found it to deep and stopped reading it. Now you got me going on it…I am going to try tomorrow reading it again. Go buy the book…see what you get out of it. It must tell something..maybe what is behind all this corruption….something has to be in that book. This may tell us more than we care to know….I am getting the chills again…LOL .

    • I vent …I went on to see if this 11-11 book was still for sale….YES it is…ONLY NOW I READ FURTHER DOWN WHAT THE BOOK IS ALL ABOUT…IT MENTIONS THE DANCING IN CIRCLES IN DIFFERENT AREAS AT THE SAME MOMENT.. MEANING AS ‘ ONE’….IT ALSO SAYS 11:11 ..WILL END ON DEC. 31, 2011…… THE TITLE ACTUALLY IS 11:11 INSIDE THE DOORWAY,,,AUTHOR: SOLARA I hope I copied and pasted this correct…my hands are shaking…after reading what it said about the book….now I am sure to read it today….

      • I vent..imagine I have had this book at least 18 years and it mentions Dec. 31, 2011….this is toooo far out….it’s 6:30AM and I never went to bed…..and what made you mention all the 11’s to me? What made you direct the comment to me? Does that not freak you too? This blows my mind. We think on the same pattern…we speak the same words…we know the history that has led up to this point…and out of the blue you direct a comment to me, of all people, with the 11’s as the topic. Yet we have never met and I don’t know what state you live in. Did I ever mention anything about 11’s to you or in any of my comments? I have made so many comments on so many sites..but I don’t recall any time talking of 11:11….never even thought of the book that has collected dust thru the years. Now I can blame you for the lack of sleep…LOL


  3. Katheryn says:

    There is really no one else to trust but God. Pray folks. Power of all with the power to God.

  4. l vent says:

    BREAKING NEWS: Lockdown at the Wisonsin State Capital. They locked out the American people and the Democrats. The NAZI’S stripped the people of their collective bargaining rights yesterday. This is about to get really ugly. Can Washington keep pretending to be distracted by the middle east’s problems and possibly ignore this one? I don’t think they have a chance in hell of sweeping this one under the rug..

    • l vent says:

      Protesters are screaming “This is OUR HO– USE” WOW!!! I think we will see what the truth is very soon and I don’t think the people are going to like it. We are being overtaken by the Nazi’s here in America. The American people ARE NOT going to stand for that.

  5. l vent says:

    Don’t look now but the stock market is plummeting. They won’t stop until they bankrupt the world. They have way to much control. RT news reported today that over 20,000 jobs were lost in America last month, yet our media reports that the unemployment number is below 8%. What the hell? I think the beast of Revelation,666, is hiding up on Wall Street .

  6. Katheryn says:


    If they steal our compoopers…how will we spread the word?

    • l vent says:

      Maybe zee cell phones. We will have to hurry up. Don’t forget the solar flares are coming and they are threatening the national power grid!!! And we don’t even want to know what they have in store for us in 2012. I heard we could be having an alien invasion on our hands.With fish dying and birds crashing to the ground God only knows what kinds of things they are going to hurl our way next. Nothing up there sleeve though, right? RT news is reporting today that muslims in NY are crying foul about being treated like terrorists by the U.S. Government. These muslims are saying that muslims had nothing to do with 9/11, They know the Zionists in Israel did it. The truth is springing leaks and making huge holes all over the pirate ship.

      • Katheryn says:

        Ah, but according to the Mayan calendar…2012 is the end. That’s why the push to rush making as much as possibile……they must have time to enjoy their ill begotten gains. They all desire to have mega compounds and vacation homes all over the world with which to rule from. Looking down on all of us little pions below scurrying around like little ants trying to rebuild what they knock down or take away. How pathetic we are. I believe they set out long ago to destroy the middle class….that was the plan from ground zero.

      • l vent says:

        The American people are thinking outside of the box alot more these days. They are turning to alternative media like RT, Al Jazeera and a wide range of internet sources in search of the truth. The truth shall set us free.

      • l vent says:

        I think their plans are flailing and they know it. They are failing to keep us all in check because many of us are not believing their constant barrage of lies. I think we are all witnessing the culmination of the final battle between good and evil. I have faith good will win but we are all at war with the dark forces right now. It is a dying beast, but it will die. God gave us the warning signs and told us all what we have to do. God will handle this, we should not live in fear.

      • l vent says:

        Hey Marilyn, another strange occurence on the 11th day of the month in the year 2011. Let’s all HAARP on this for awhile shall we? Remember 1/11/11 at 11/11 moment of silence by Pres. Obama for the victims of the Ariz. shooting. 2/11/11 Mubarak steps down as leader of Egypt. 3/11/11 Japan earhtquake and sunami. Lots of eerie coinkidinks with the #11’s.

      • l vent says:

        Check this out: Another conspiracy theory? You be the judge.

      • I vent…I am over tired now…but didn’t yesterdays news say something about a large amount of sardines ( I think that was the fish) washed up somewhere on the west coast? Testing showed a toxin killed the fish…and what about the birds in the west last month? Many died in more than one state….but in one area each time….well..the birds crashed to the ground and the fish died… this, whoever, testing what 2012 has in store? In a book by David the beginning he mentions 2012 and this book was published in 2002..”.So predictable…the plan is to engineer events, real and staged, that will create enormous fear in the countdown years to 2012. This includes a plan to start a Third World War either by stimulating the Muslim world into a ‘ holy war ‘ against the West or by using the Chinese to cause global conflict…Maybe both..” I vent..get that book…11-11.

  7. pete pollard says:

    To gain any relief I think you will have to broaden your base of support. As difficult as your mortgage problems are they are the tip of the iceberg imo.

    We are all caught in a downward economic spiral which leaves only the very wealthy untouched.

    I think it is time to reach out to all members of our communities who are suffering from this terrible economy.

    I’m retired and willing to help, but lack the organizational skills. Can someone point me in the right direction?

    • Katheryn says:

      Thank you Pete, that is exactly the point I’ve been trying to make. The general conception, because they don’t know any different, of the general public not involved in the mortgage fiasco, is this is all due to deadbeats trying to get free homes. They have done an excellent job with their press campaigns.

    • l vent says:

      This Ponzi Scheme was a CENTRAL STRATEGIC PLAN to destroy AMERICA. Isn’t that called TREASON???

  8. l vent says:

    Well, look what I found. I have the original note and mortgage, with my original signature both stamped and recorded paid for my commercial property. WOW!!! Guessin’ they might not have thee note to fraudclose.

    • Katheryn says:

      Remember, they have many tricks up their sleeves. If we’re not careful they will soon take away our computers and disconnect our internet service. In case you didn’t hear, they passed new legislatiion in all 50 states….if you’re behind on your payments your internet service is immediately terminated and they will be at your door to confiscate your computer. No judicial hearing is needed as the legislative interpretation makes no distinction whether you live in a judicial or non-judicial state. There will be no need for mediation or couseling, however, there will be a slight fee to cart away your television sets.

      • l vent says:

        They are asking for it, dontcha think? They are calling the people out and sooner or later It’s gonna get ugly. It is Anarchy they want I guess. Many won’t be as civil as we have been towards them. We tried to be fair and even wanted to take fraudulently induced loan mods at one time. Now we know better, that would have been more fraud and we would have been aiding and abetting the criminals by participating in HAMP. When the Government and the Judicial system is this corrupt, the people have no choice but to take matters into their own hands. It is a damned shame that greed and corruption ruined everything the American people built, but we will rebuild, and we will get it right again, we always do.

      • l vent says:

        They can steal the compooper? There will be shoot outs over that, dontcha think? We can’t live in fear or they win. Screw them. I want to see them try to steal people’s compoopers. That will be the tipping point for surely.

  9. MARIO KENNY says:

    An insufficient amount of people are fighting the banks, this is not to imply that there has not been an improvement, in terms of the numbers, but not enough, and it may also be too late, this has not gotten better, as in the first days of the foreclosure mess, few people thought it was real, most people were asleep, and most still are in slumber, America only seem to cure problems, but, not until these issues become compelling situations with evidence on its face, showing catastrophic end results, and sometimes not even there do they act.

    Does anyone think it will not get better until it gets worst? Not knowing this fact, which history demonstrates decisively is a deficient thought pattern of success, in and of itself in this specific issue.

    In the beginning I thought we would see a quick turn in the situation, as the evidence of ” mal doing ” was rife, then I began to understand things like, we have to squat the homes, we have to exchange homes, lease our homes to each other, or we can wish that the situation melts down hard and fast, or wish that it gets to the rock bottom and then we can start to clean up and rebuild/repair the mess wall street made, this is how it works here, when the Judge loses his 401K we will see a knee jerk, when the city is broke, they will do the right thing going forward, when people are living in the park the government will realize that giving the bank free houses, is counterproductive, wrong and contrary to stated common law of our land, or just leave it to the good litigants to battle in courts that “obey” the stated black letter law already on the books, because you should know that a litigant can beat any bank all the time, if, the Judges would follow the law, moreover it will not get better until it gets bad, real bad, that is my opinion and I have stuck to it for the past 4 yrs.

  10. Bust them! says:

  11. Shane says:

    I know people got caught up in the refi-no-consequence-prices-will-never-go-down craze, but I’ve heard little about whether appraisers during this time purposfully inflated (or kept inflated) the values of their appraisals to hoodwink the public regarding the true values of the homes. Any thoughts on this. I recently had my house appraised and I believe they inflated it’s worth. I was happy they did because it allowed me to refi, but I’m confident when I go to sell I’ll see the truth.

    • Katheryn says:


      I hate to admit it, but I was in the industry. I was in new construction and in the late 90’s real estate started to get really crazy. Anything and everything was selling at super hightway speed. Prices were raised after every two sales contracts. Homes on the resale market were selling for thousands of dollars more then the asking price as numerous buyers would try to outbid each other. It was a frenzy and I could not understand how people were acting so foolishly even though I was in the industry. It was not like that when I started in new construction sales. Loans were approved on legitimate qualifying terms and there were none of these “funny” and “no down” loans. But to answer your question, I think the appraisals were mostly honest values during that time. The appraisers were as puzzled as to the buying frenzy as others in the industry . It seemed that there was no price rise too great to slow down the buying and this led eventually to the banks getting more and more creative in their financing in order to get buyers qualified and approved for the loans. In the midst of this craze, the banks got very clever, thus the creation of their ponzi schemes. People were making good incomes and they figured that the worst that could happen if they could not afford their home would be to sell it, make a few bucks and scale back. However, the banks knew all good things must come to an end and had prepared well fin advance for the present crisis we now find ourselves in. The banks saw the “perfect” storm brewing and played it out flawlessly making billions of dollars. From about the late 90’s there were not honest appraisals or honest anything else to do with the industry…it was all a sham as well as a shame.

      • l vent says:

        When I look back at the comps they used I don’t see the correlation between my home and the homes they used. All of their palms were greased. When this whole Ponzi was peaking, there was a frenzy of FRAUD and it was RAMPANT in the mortgage biz. They were all acting like pimps and whores. The entire process was fraudulent from the fraudulent inducements to the appraisals and underwriting. They were all in on the game. To bad the victims were the homeowner’s who were just wanting the American dream. Who in their right mind would have thought a bank would give them a loan they clearly did not qualify for. We were all too trusting and we did not verify enough. Everyone bought a house they could not afford IF they lost their job or business but no one thought like that. Everyone thought the wheels were going to keep turning and the criminals kept greasing them up. Let’s face it, they had the tools to commit the fraud and they used and robbed EVERYONE and EVERYTHING not nailed down. They used a very deceptive and STRATEGIC CENTRAL PLAN to DESTROY AMERICA. ISN’T THAT CALLED TREASON???

  12. l vent says:

    Check out todays Keiser report on RT. Max was spot on as always. He has some very interesting things to say about a revolution and how to do it.

  13. tremendous view says:

    Thats what ive been trying to tell you dang it!!!!!!!!!!!!!!!!! Was it worth to live high on the hog a few years to have you lose everything and dread the 5:30 am knock on door!!!!!??????????????????????????????????? Tarts

  14. Kisznyuszi says:

    I only have one suggestion to homeowners in trouble; trade homes and rent to each other at a negative equity that will lock in a life lease that is unbreakable by the bank. The bank will have to pay for all utilities, furnishings, property taxes, and waive all rights of owner and owner’s predecessor(s). If you have a house make huge renovations and mechanics liens the bank will have to pay to take your home. Make them actually cough up the money and not pass around unsigned notes and IOU’s.

    • Katheryn says:

      Hey seriously, do you think it could work? With all the talent on these blogs we should be able to come up with an equally good ponzi scheme of sorts to use on the banks. We should inlist the help of the trust holders who also got the shaft.

  15. MARIO KENNY says:

    Well at 49% underwater, and several million homes already taken, was there hardly a blink by the banks, the government, or the people? the answer is nope, they do not get it yet, and under present circumstances they may get it in the next 3yrs or so, and that is IF, somehow it has to be up front and personal, when everyone understands, that the banks are getting free houses, then maybe more people will realize and the government and the financial system will blink, then we might see some real change and proper solutions, but the numbers are far short yet to facilitate the balance of wealth that the homeowners control.

    • Katheryn says:

      Oh the banks get it….or should I say GOTTEN IT? Lets see, what have the gotten:

      Billions of Dollars
      No Criminal Penalties
      Politicians in Their Pockets
      Judges in Their Pockets
      Ability to Avoid Paying Fees that Everyone Else Must Pay
      Robbing Communities of Much Needed Funds for Community Services and Schools
      Heck…they would take the candy right out of the babies mouths..if they could re-sell it for a profit

      I am getting ready for work now, but first let me go stick my head in the toilet bowl!

  16. Katheryn says:

    Here’s hoping that is just very dry humor.

  17. l vent says:

    Yes it was a Ponzi Scheme and there is still one gong on according to Bernie Madoff. He should know. But what is the bigger picture? I think it could go the way of socialism, or a one world dictatorship with one creepy world leader or the people will revolt on both and take their country back. I am hoping for the latter. None of us signed up for either of those other two. When a country is this corrupt nothing good could be up any of their sleeves. Foreign Multinationalists aided and abetted by Treasonists have nearly destroyed everything. No one wants to live UNDER anyone.That crushes free will. People and societies do not prosper under oppression. We do not need the Government to protect us from dictators with socialism, We can protect ourselves, Beware of Governments bearing gifts such as healthcare, we would rather be able to afford our own. We don’t need to be fondled or x-rayed at airports, let us bring our guns on the planes and everywhere else we go, there will be no terrorism threat. We need the Government to stay out of our personal lives and stop letting the foreigners steal everything from the American people and force the thieves to return what they have already stolen.. The Government also must stop letting the foreigners steal our homes, that is disgraceful. The Government must stop trying to micromanage every aspect of our lives. We are fully capable of taking care of ourselves, Thank you very much.

  18. MARIO KENNY says:

    I do not think that anything is too wrong here, the numbers are not high enough to be of any importance, if it gets to be near or over 75% then we would be concerned, when whole families live in public parks or on the beach, we might have cause for real concern, but so far the courts have done a great job and many people are not homeless.

    • Antipodeus says:

      So – “many people are not homeless.” Is that your definition of success? Is that REALLY your opinion of the previously admirable legal system of the U.S.A. – that “the courts have done a great job”? You are clearly either delusional, insane, or bought. Your country, once a beacon of hope, freedom and justice, has been busy exporting inflation (thanks to the Fed’s ZIRP & QE’x’) to the rest of the world (witness all the current problems/revolts in the MENA countries – which are about RISING FOOD & FUEL PRICES, not ‘DEMOCRACY’) so you guys don’t suffer from it. And that isn’t going to last much longer.

      ‘Citizens United’ has given you the best government money can BUY, but certainly not the best government you could HAVE. How do you like living in a ‘failing state’ which is increasingly being seen, even by its dwindling number of genuinely concerned friends, as a LAUGHING STOCK?

      “Land of the FREE and home of the BRAVE”? IN YOUR DREAMS.

      • l vent says:

        @antipoedus: We are all in this together, unless you are in the top 2%. So how do you like the way greed and corruption by Multinational banksters, Multinational Corporations and treasonists within our own Country and Government are trying to bankrupt and destroy America? The sarcasm is unproductive and helps no one. I love this Country and we all know we are alot better than this. The American people have just been a little too trusting and didn’t do enough verifying. America will get it right again. God is on our side. God Bless America.

    • Katheryn says:

      I will not even dignify your comments with a response. However, my feeling is you are more after the level of agitation you can stir up rather than the truly sad state of this country. Best of luck to you if you are ever in need of the court system for any reason…unless of course, it is for white collar crime… worries!

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