U.S. Cities With The Most Underwater Mortgages Q1 2009

Source: Zillow.com This story has been updated. For the most recent data, click here.For individual homeowners, being “underwater” on a mortgage – when a home is worth less than outstanding debt, or has “negative equity” – is one of the worst positions to be in, short of foreclosure. Zillow.com, a firm that compiles US real estate and mortgage information, has put together a list of the 163 largest metro areas that includes statistics on median home values, market changes and the proportion of homes with negative equity. Also included is data on short sales, which occur when real estate sells for less than the value of outstanding debt on the property.Included in the data is the “Zillow Home Values Index,” which represents the median measure of home valuations. According to Zillow’s most recent report, the median US home price is $182,378, down 14.2% from a year earlier. Almost one in five - 21.9% - of US homes are underwater. So, which metro areas have the highest proportion of homes underwater? Click ahead for the results. By Paul ToscanoPosted 15 May 2009

Photo: TheTruthAbout... Homes with negative equity: 38.4%Of Homes Sold in Last 12 Months:Foreclosure transactions: 48.4%Short-sale transactions: 3.3%Zillow Home Value Index: $151,392Year-over-year change: -32.1%Last time market was at current levels:  Q4 2002Change from market peak: -55.3%

Photo: ReignMan Homes with negative equity: 38.4%Of Homes Sold in Last 12 Months:Foreclosure transactions: N/AShort-sale transactions: N/AZillow Home Value Index: $153,258Year-over-year change: -22.6%Last time market was at current levels: Q4 2003Change from market peak: -51.0%

Photo: Bobak Ha'Eri Homes with negative equity: 39.1%Of Homes Sold in Last 12 Months:Foreclosure transactions: 41.5%Short-sale transactions: 7.1%Zillow Home Value Index: $142,823Year-over-year change: -29.4%Last time market was at current levels: Q4 2003Change from market peak: -49.5%

Photo: Jloeblein Homes with negative equity: 39.2%Of Homes Sold in Last 12 Months:Foreclosure transactions: 41.2%Short-sale transactions: 8.5%Zillow Home Value Index: $165,754Year-over-year change: -22.5%Last time market was at current levels: Q2 2004Change from market peak: -48.7%

Photo: Gabriel Flores Romero Homes with negative equity: 41.2%Of Homes Sold in Last 12 Months:Foreclosure transactions: 47.7%Short-sale transactions: 4.7%Zillow Home Value Index: $153,214Year-over-year change: -21.9%Last time market was at current levels: Q1 2004Change from market peak: -42.9%

Photo: Peter Dutton Homes with negative equity: 41.7%Of Homes Sold in Last 12 Months:Foreclosure transactions: N/AShort-sale transactions: N/AZillow Home Value Index: $159,218Year-over-year change: -21.9%Last time market was at current levels: Q1 2004Change from market peak: -39.7%

Photo: Wjhonson Homes with negative equity: 41.7%Of Homes Sold in Last 12 Months:Foreclosure transactions: 42.8%Short-sale transactions: 6.5%Zillow Home Value Index: $167,456Year-over-year change: -24.4%Last time market was at current levels: Q2 2004Change from market peak: - 42.0%

Photo: TheTruthAbout... Homes with negative equity: 42.8%Of Homes Sold in Last 12 Months:Foreclosure transactions: 44.2%Short-sale transactions: 6.5%Zillow Home Value Index: $209,025Year-over-year change: -31.1%Last time market was at current levels: Q1 2003Change from market peak: 48.9%

Photo: Joe Shlabotnik Homes with negative equity: 43.5%Of Homes Sold in Last 12 Months:Foreclosure transactions: N/AShort-sale transactions: N/AZillow Home Value Index: $138,612Year-over-year change: -20.2%Last time market was at current levels: Q1 2003Change from market peak: -47.5%

Photo: Ron Johnson Homes with negative equity: 44.4%Of Homes Sold in Last 12 Months:Foreclosure transactions: 48.1%Short-sale transactions: 4.3%Zillow Home Value Index: $145,725Year-over-year change: -27.6%Last time market was at current levels: Q3 2001Change from market peak: -58.9%

Photo: Coolcaesar Homes with negative equity: 46.5%Of Homes Sold in Last 12 Months:Foreclosure transactions: 44.3%Short-sale transactions: 7.2%Zillow Home Value Index: $235,385Year-over-year change: -31.8%Last time market was at current levels: Q1 2001Change from market peak: -51.0%

Photo: Warren B. Homes with negative equity: 48.5%Of Homes Sold in Last 12 Months:Foreclosure transactions: 36.6%Short-sale transactions: 10.6%Zillow Home Value Index: $204,729Year-over-year change: -23.1%Last time market was at current levels: Q2 2003Change from market peak: -42.2%

Photo: Tom Hilton Homes with negative equity: 50.8%Of Homes Sold in Last 12 Months:Foreclosure transactions: 44.8%Short-sale transactions: 6.3%Zillow Home Value Index: $159,634Year-over-year change: -30.4%Last time market was at current levels: Q1 2001Change from market peak: -57.2%

Photo: Inman News Homes with negative equity: 51.1%Of Homes Sold in Last 12 Months:Foreclosure transactions: 45.4%Short-sale transactions: 5.7%Zillow Home Value Index: $175,484Year-over-year change: -32.4%Last time market was at current levels: Q4 2000Change from market peak: -57.5%

Photo: matze ott Homes with negative equity: 67.2%Of Homes Sold in Last 12 Months:Foreclosure transactions: 46.9%Short-sale transactions: 6.5%Zillow Home Value Index: $158,839Year-over-year change: -30.3%Last time market was at current levels: 2003-Q2Change from market peak: -49.3%Replay SlideshowHighest State Foreclosure RatesBiggest Types of Personal DebtMost Affordable Metro Areas

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