Ten percent of U.S. homeowners still 'underwater'September 9, 2013 @ 11:21 am
The number of homeowners underwater on their mortgage-owing more than their home is currently worth-continues to drop, but a few metros are still facing a disproportionate number of struggling owners.
Nationwide, 10.6 percent-or 5.3 million-of all mortgage holders remain underwater. Still, that marks a big improvement from early 2011 when a third of all mortgage holders were underwater, according to data from Lender Processing Services.
The following metros are seeing the largest number of underwater homeowners:
- Rockford, Ill.: 32.3 percent
- Atlanta: 29.4 percent
- Las Vegas: 27.3 percent
- Orlando: 26.6 percent
Rockford, Ill., which has the highest number of underwater owners in the country, faces a big foreclosure problem. The city - which once attracted Chicago residents with its lower housing prices - now has about 5,400 vacant housing units, 2,000 of which are abandoned or boarded up. Unemployment in the area also is 11.4 percent-down from 15.7 percent in July 2009 but way above the 7.3 percent national rate.
While new construction in the area has basically come to a halt, the area's home prices are starting to edge upward, mostly driven by investors who are buying homes for cash and renting them out.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.