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

The Most Underwater Mortgages
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 U.S. real estate and mortgage information, has put together a list of the 163 largest U.S. 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 w
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 Toscano
Posted 15 May 2009

14. (tied) Madera, CA
Homes with negative equity: 38.4%Foreclosure transactions: 48.4%Shore-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: 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: $151,392
Year-over-year change: -32.1%

Last time market was at current levels:  Q4 2002
Change from market peak: -55.3%

14. (tied) Cape Coral-Fort Myers, FL
Homes with negative equity: 38.4%Foreclosure transactions: N/AShore 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: ReignMan

Homes with negative equity: 38.4%

Of Homes Sold in Last 12 Months:
Foreclosure transactions: N/A
Short-sale transactions: N/A

Zillow Home Value Index: $153,258
Year-over-year change: -22.6%

Last time market was at current levels: Q4 2003
Change from market peak: -51.0%

13. Bakersfield, CA
Homes with negative equity: 39.1%Foreclosure transactions: 41.5%Shore-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: 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: $142,823
Year-over-year change: -29.4%

Last time market was at current levels: Q4 2003
Change from market peak: -49.5%

12. Yuba City, CA
Homes with negative equity: 39.2%Foreclosure transactions: 41.2%Shore-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: 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: $165,754
Year-over-year change: -22.5%

Last time market was at current levels: Q2 2004
Change from market peak: -48.7%

11. El Centro, CA 
Homes with negative equity: 41.2%Foreclosure transactions: 47.7%Shore 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: 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: $153,214
Year-over-year change: -21.9%

Last time market was at current levels: Q1 2004
Change from market peak: -42.9%

9. (tied) Orlando, FL
Homes with negative equity: 41.7%Foreclosure transactions: N/AShore - 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: Peter Dutton

Homes with negative equity: 41.7%

Of Homes Sold in Last 12 Months:
Foreclosure transactions: N/A
Short-sale transactions: N/A

Zillow Home Value Index: $159,218
Year-over-year change: -21.9%

Last time market was at current levels: Q1 2004
Change from market peak: -39.7%

9. (tied) Phoenix-Mesa-Scottsdale, AZ
Homes with negative equity: 41.7%Foreclosure transactions: 42.8%Shore 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: 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: $167,456
Year-over-year change: -24.4%

Last time market was at current levels: Q2 2004
Change from market peak: - 42.0%

8. Riverside-San Bernardino, CA
Homes with negative equity: 42.8%Foreclosure transactions: 44.2%Shore 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: 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: $209,025
Year-over-year change: -31.1%

Last time market was at current levels: Q1 2003
Change from market peak: 48.9%

7. Port St. Lucie-Fort Pierce, FL
Homes with negative equity: 43.5%Foreclosure transactions: N/AShore 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: Joe Shlabotnik

Homes with negative equity: 43.5%

Of Homes Sold in Last 12 Months:
Foreclosure transactions: N/A
Short-sale transactions: N/A

Zillow Home Value Index: $138,612
Year-over-year change: -20.2%

Last time market was at current levels: Q1 2003
Change from market peak: -47.5%

6. Merced, CA
Homes with negative equity: 44.4%Foreclosure transactions: 48.1%Shore 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: 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: $145,725
Year-over-year change: -27.6%

Last time market was at current levels: Q3 2001
Change from market peak: -58.9%

5. Vallejo-Fairfield, CA
Homes with negative equity: 46.5%Foreclosure transactions: 44.3%Shore 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: 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: $235,385
Year-over-year change: -31.8%

Last time market was at current levels: Q1 2001
Change from market peak: -51.0%

4. Reno-Sparks, NV
Homes with negative equity: 48.5%Foreclosure transactions: 36.6%Shore 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: 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: $204,729
Year-over-year change: -23.1%

Last time market was at current levels: Q2 2003
Change from market peak: -42.2%

3. Modesto, CA
Homes with negative equity: 50.8%Foreclosure transactions: 44.8%Shore 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: 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: $159,634
Year-over-year change: -30.4%

Last time market was at current levels: Q1 2001
Change from market peak: -57.2%

2. Stockton, CA
Homes with negative equity: 51.1%Foreclosure transactions: 45.4%Shore 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: 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: $175,484
Year-over-year change: -32.4%

Last time market was at current levels: Q4 2000
Change from market peak: -57.5%

1. Las Vegas-Paradise, NV
Homes with negative equity: 67.2%Foreclosure transactions: 46.9%Shore 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%
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: $158,839
Year-over-year change: -30.3%

Last time market was at current levels: 2003-Q2
Change from market peak: -49.3%