Sep 13, 2011
30% of Virginia mortgages are underwater
13 Sep 2011
Posted by Andrew Kantor
Almost 30 percent of Virginia’s mortgage holders are underwater or close to it, according to a new report from CoreLogic.
Of the 1.3 million homeowners in the state with mortgages, almost 305,000 owed more than their homes were worth, and almost 80,000 more were within five percent of being underwater. The total represents about 29.4% of mortgages.
In the Washington, DC, area, 33.8% of mortgage holders were underwater; in the Virginia Beach-Norfolk-Newport News region that number was 31.8%. (The report only offered details on the 50 largest markets.)
How does that compare? About 27.5% of homeowners with mortgages in the U.S. are underwater or close to it. Of the 45 states CoreLogic has data for, Virginia ranks 38th; only Maryland, California, Georgia, Michigan, Florida, Arizona, and Nevada are in worse shape. (In Nevada, almost two-thirds of mortgages are in or near negative equity.)
To make matters worse, CoreLogic found that “nearly three-quarters of homeowners in negative equity situations are also paying higher, above-market interest.”