- 19%, or 14.748 million of the 77.570 million US households, are in negative equity.
- 30.6% of the 48.243 million of homeowners with first mortgages are in negative equity.
- 21.8% of the 67.578 million in owner-occupied single family homes are in negative equity.
- 4.133 million of the 14.748 million of underwater homeowners are underwater by 50%+, meaning the owe more than 50% more than their homes are worth.
[pullquote_right]“$2.4 trillion in total mortgage debt is impaired due to negative equity“[/pullquote_right]
Of the 50%+ underwater category, the worst states are California (672K), Florida (423K), and Texas (344K)
*Total Negative Equity in the US is currently estimated at $771.1 billion
California mortgages have $234 billion in negative equity, Florida mortgages have $79 billion in negative equity, Texas mortgages have $48 billion in negative equity
*$2.4 trillion in total mortgage debt is impaired due to negative equity
We know that being underwater is one of the biggest factors in people deciding to walk away from their mortgages. It stands to reason then that the more underwater a borrower is, the more likely they are to walk away. Certainly it will be many, many years before these borrowers see positive equity again. We also know that should any of these borrowers need to leave, at best they are looking at a short sale.
Clearly this level of negative equity is going to feed the cycle of foreclosures and short sales and make it even more difficult for the market to recover.