More Than Half of Phoenix Mortgage Borrowers Are Underwater

More Than Half of Phoenix Mortgage Borrowers Are Underwater

ICTMN Staff
5/24/12

More than 30 percent of U.S. homeowners—or 15.7 million—had mortgages underwater during the first quarter of the year, the Phoenix Business Journal reported.

But the percentage of mortgage borrowers who owed more on their home than it was worth proved especially grim for Las Vegas at 71 percent and Phoenix at 55.5 percent.

In Phoenix—home to nearly 32,000 American Indians, according to Census data—roughly 27 percent of mortgage borrowers owed double what their home is worth in the first quarter, the report said. While another 9 percent were charged with at least 90 days delinquency, the study emphasized being underwater does not inevitably result in foreclosure. Approximately 23 percent of Phoenix homeowners, on the other hand, fared better, owing anywhere between 1 and 20 percent of the value of their homes.

Overall, Phoenix mortgage borrowers have generated roughly $39 billion in total negative equity.

The increase in underwater homeowners occurred despite the fact that home prices have slowly started recovering, according to recent FNC reports.

Below is the complete list of metropolitan areas and their underwater mortgage rates from Zillow’s report:

  • Las Vegas: 71%
  • Phoenix: 55.5%
  • Atlanta: 55.2%
  • Orlando: 53.9%
  • Riverside, Calif.: 53.4%
  • Sacramento, Calif.: 51.2%
  • Detroit: 49.8%
  • Tampa, Fla.: 48.3%
  • Miami - Fort Lauderdale, Fla.: 46.4%
  • Chicago: 41.1%
  • Minneapolis - St. Paul, Minn.: 39.9%
  • Seattle: 39.6%
  • Charlotte, N.C.: 36.6%
  • San Diego: 35.6%
  • Portland: 34.3%
  • Columbus, Ohio: 34.2%
  • Cleveland: 33.9%
  • Virginia Beach, Fla.: 33.2%
  • Washington D.C.: 32.4%
  • Baltimore: 31.4%
  • Dallas - Fort Worth, Texas: 30.7%
  • San Francisco: 30.7%
  • St. Louis: 30.7%
  • Los Angeles: 30%
  • Denver: 29%
  • Philadelphia: 25%
  • San Jose, Calif.: 22.7%
  • Boston: 22%
  • New York: 21.3%
  • Pittsburgh: 16.7%
  • U.S. average: 31.4%

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