Maar

If the last two years are any indication, sometime in the near future “equity” might become one of those outdated words that sounds stilted and foreign, like “tolerance” and “candor.” For decades, homeowners relied on home equity for capital, wealth, and security. But as the subprime fallout continues, many homeowners are finding home ownership not only a risk, but a serious burden they can’t unload.

Home values nationwide have already plummeted 18.4 percent since July 2006, according to the Standard & Poor’s/Case-Shiller 20-city index. And after Panic Monday’s collapse of Lehman Brothers and the buyout of Merrill Lynch, housing experts say home prices will likely drop much further.

We’ve been talking about the gem that is illustrative mortgage maps from the Federal Reserve Bank of New York for a while now. The New York Times and a number of other news outlets wrote about the site back in early spring, using it as a primary resource to illuminate the growing mortgage crisis.

A new report by the Minneapolis Area Association of Realtors reveals that foreclosures and short sales accounted for 27.6 percent of all closed sales in the first quarter of 2008. During the first quarter of 2007, these types of sales made up only 9.3 percent of the total market share.

Short sales are when the homeowner [...]