Nearly 90% of the homeowners in Mountain House, CA owe more on their mortgages than their house is worth. The average homeowner is down by $122,000. What are they doing to cut back? No more dinners at Applebee’s, buying 1 DVD a month instead of 50, canceling remodeling projects, and playing board games at home instead of going out to the movies, “But not Monopoly,” reports NYT, “with its real estate theme, it reminds them too much of real life.” One man is even cutting back on his scub and flying hobbies, and waiting until after Christmas to buy a high-def television. Wow. I think you’re going to have to dig a little deeper…

A Town Drowns in Debt as Home Values Plunge [NYT]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.