Mountain House, California is an example of the most drastic of housing crashes. Almost 90% of the homeowners in Mountain House owes more on their mortgage then their home is worth, on average by $122,000.

Typically people do not pay close attention to the value of their home as long as they can make their payments, but when there is such a drastic decrease in the amount, when your home loses 50% of its value it is cause for worry. As a consequence people are cutting back on their spending, consumer shopping slows, the economy slows, more people lose their jobs, and it spirals down.

Mountain House is a mirco example of what is happening financially with the country as a whole. So once again we must look to the root of the problem; the housing crisis.

This entry was posted on Tuesday, November 11th, 2008 at 3:24 pm and is filed under Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.