States Sunk by Underwater Mortgages

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10. Virginia
> Pct. homes underwater: 23%
> Total property value: $428.46 billion
> Mortgage debt outstanding: $307.48 billion
> Median home value drop from peak: 16.7% (21st-biggest decline)
> Homes in foreclosure or 90+ days delinquent: 4.1% (ninth-smallest percentage)

According to CoreLogic’s Q4 2011 report, 23% of Virginia’s mortgaged homeowners owe more on their mortgages than their property is worth. An additional 6% are on the verge of being underwater. Compared to many of the markets that have large numbers of upside-down homeowners, Virginia was not one of the worst-hit markets by the housing collapse. Despite the high percentage of underwater mortgages, the rate of mortgaged homes in delinquency or foreclosure is one of the lowest in the country. One of the reasons for this is the ability of homeowners to remain solvent. Virginia has an unemployment rate of just 6.2%, the 11th lowest in the country, as well as low poverty and high median income.

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9. Ohio
> Pct. homes underwater: 23.9%
> Total property value: $310.62 billion
> Mortgage debt outstanding: $238.20 billion
> Median home value drop from peak: 14.4% (23rd-biggest decline)
> Homes in foreclosure or 90+ days delinquent: 6.9% (14th-largest percentage)

Of the 2.2 million mortgages in the state of Ohio, more than 525 million have negative equity, and an additional 134 million are on the brink of being underwater. As of the end of 2011, 6.9% of homes in the state were either currently in foreclosure or have been delinquent for 90 days or more on payments. The total value of all mortgaged homes in the state is $310 billion, and outstanding mortgage debt for those homes is $238 billion. This loan-to-value ratio, 76.7%, is the sixth highest in the country.

8. Maryland
> Pct. homes underwater: 24.3%
> Total property value: $418.34 billion
> Mortgage debt outstanding: $296.81 billion
> Median home value drop from peak: 23.7% (12th-biggest decline)
> Homes in foreclosure or 90+ days delinquent: 8.0% (tied for fifth-largest percentage)

Like those in Virginia, Maryland’s residents appear to be in good financial shape, despite the fact that nearly one in four mortgaged homes are underwater. Median income in the state is the highest in the country and the poverty rate is the third lowest. However, this has not been enough to save a large percentage of state residents from financial troubles. Some 8% of mortgaged homes are either in foreclosure or at least 90 days delinquent on their mortgages, tied for the fifth-highest rate in the country.

7. Idaho
> Pct. homes underwater: 25.0%
> Total property value: $49.76 billion
> Mortgage debt outstanding: $36.58 billion
> Median home value drop from peak: 29.3% (sixth-biggest decline)
> Homes in foreclosure or 90+ days delinquent: 5.2% (20th-smallest percentage)

Like Maryland, nearly one in every four Idaho homes are underwater, although the financial situations of the two states could not be more different. Idaho has the 13th-lowest median income in the country, above-average unemployment and a poverty rate of 14.3% (compared to Maryland’s 9.1%). Since its peak in the first quarter of 2011, home prices in the state of Idaho have fallen nearly 30%. According to Gallup’s recent consumer confidence poll, Idaho residents had the third-lowest confidence in the national economy of any state.

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6. California
> Pct. homes underwater: 29.9%
> Total property value: $2.73 trillion
> Mortgage debt outstanding: $1.94 trillion
> Median home value drop from peak: 46.7% (third-biggest decline)
> Homes in foreclosure or 90+ days delinquent: 7.0% (12th-largest percentage)

As of the fourth quarter of 2011, there was $8.7 trillion in mortgage debt nationwide — $1.94 trillion of that, or 22%, is located in California. Nearly 30% of California’s mortgages are underwater, and 16.1% of mortgages are worth less than 80% of their debt. From its prerecession peak in the first quarter of 2006, home values have fallen 46.7% and are projected to fall an additional 4.2% by the third quarter of this year.