Mapped: Where Homeowners Are Seriously Underwater on Their Mortgages

3 weeks ago 35

The share of seriously underwater homes is up half a percentage point from last year, and in states such as Minnesota, South Dakota, Iowa, Michigan, and the District of Columbia, it's risen dramatically.That's according to the latest report from real estate analytics firm ATTOM, which found that 3.2% of mortgages were considered underwater in the second quarter of this year, up from 2.7% last year.Underwater mortgages are mortgages in which a homeowner's debt on the home exceeds a home's market value by 25% or more. Having an underwater mortgage creates negative home equity and often makes it impossible to refinance or sell without losing money. An underwater mortgage effectively hobbles a homeowner's mobility. And while 3.2% of the housing market may not seem like a concerningly high number, that equates to between 1 million and 2 million homes. This has a knock-on effect on the housing market, limiting inventory.According to ATTOM's report, the states that saw the biggest annual increase in underwater mortgage rates were Minnesota (12.1% of homes seriously underwater, up from 2.6% a year ago), South Dakota (to 5.7% from 3.1%), Iowa (to 7.8% from 5.9%), Michigan (to 4% from 2.5%),...

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