Half of US subprime and Alt-A soon “underwater”

None other than Barclays Capital warned Tuesday that roughly half of all subprime and Alt-A borrowers in the U.S. could soon owe more than their house is worth, or have extremely minimal equity left — a problem that is imperiling more homeowners in the States than mortgage rate resets, which have received far greater press coverage.  Continued price declines are likely to put as much as $800 billion worth of debt at risk. http://www.housingwire.com/2008/04/29/barclays-issues-warning-on-underwater-borrowers/

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