WHAT ABOUT THE ELEPHANT IN THE ROOM? HOUSES THAT ARE "UNDERWATER." WHO'S IN IT DEEP?

According to Zillow, 9,200 homes are worth half their mortgage.  Another 14.1%, or 62,500 households, owe about 20% more than their homes are worth.  And approximately 8.2%, or 36,600 homes, owe 40% more than their home is worthy.  Now without getting into the debate of how many of these homes were bought at market value in the past 12 to 14 years, and were refinanced two and three times, while owners took maximum cash in hand, much like an ATM, it can be argued that all but the most severe waterlogged properties, will, if held long enough, become once again equity properties for their owners.  But less the reader believe, erroneously, that every property is in danger, give you some numbers to bring comfort to the discouraged.  According to LPS Farm 2.0, a data company for title companies, there is a total of 696,776 residential properties in Orange County, that includes condos and single family residences only, both owner occupied and non-owner occupied (rentals).  When you look at that number, you can see there is a lot more home equity in this county than there is waterlog.  It's just that writing about the positive through all of this downturn, doesn't sell papers.  In fact, for the last full month available, there were 1,337 equity sales or single family residential properties in Orange County and 591 distressed sales (includes short sales and bank owned).  Condos didn't fare quite as well, but still, there were 427 equity sales of condos.