Martin Feldstein's new proposal for helping homeowners who now have negative equity in their homes.
And of those who bought homes in the last five years, 29percentt now have negative equity.
With house prices still falling, many borrowers would soon have negative equity again.
But lower house prices would be uncomfortable given that 17% of households have negative equity.
Other parts of the midlands, Wales and north of England have negative equity rates of 7-10%, not much less worrying.
The second requirement is for a program to buy whole loans that were initially well underwrittenbut now have negative equity.
By James Surowiecki November 18, 2008 Martin Feldstein's new proposal for helping homeowners who now have negative equity in their homes.
Plus, with house prices falling, they have negative equity and can no longer sell or refinance.
Many prime borrowers now have negative equity in their homes.
The latest annual report in March showed Adani Mining in Australia carried $1.3bn in debt and had negative equity of $230m.
Of the home loans with initial interest rates of 1.5percentto1.91.9 percent, 19.1 percent of home owners had negative equity.
