According to The New Bottom Line's report, "The Win/Win Solution: How Fixing the Housing Crisis Will Create One Million Jobs," if the banks fix what they broke and wrote down principals on all underwater mortgages to current market value, it would inject a direct cash stimulus into the economy, redirecting billions of dollars that cash-strapped homeowners are currently paying on inflated mortgage debt toward other job-creating sectors of the economy and ultimately help to rebuild strong and vibrant communities.
The report includes both a state-by-state breakdown of the number of underwater mortgages in your state and the money that drains from the state. It also documents if principal reductions were made how much the average homeowner would save per month, the amount that would be pumped into the local economy, and the numbers of jobs created.
Check out your state below!
Total Underwater Mortgages per State
Negative Equity per State
The amount of money each state loses per year due to underwater mortgages
Monthly Savings by Homeowners per State
The average amount of money that each homeowner in a state would save per month in mortgage payments
Total Annual Stimulus Spending per State
The total amount of money that would be pumped back into each state every year if principal interest on underwater mortgages was lowered to current market value
Total Jobs Created per State
The total number of jobs that would be created per year if principal interest on underwater mortgages was lowered to current market value