Here’s a startling statistic: the number of homeowners who owe more on their mortgage than their home is worth is greater than the number of residents in most states.
According to the latest report from Zillow, nearly 11 million homeowners have negative equity in their homes, or are considered underwater. That’s more than the population of 43 of our states: only California, Texas, New York, Florida, Illinois, Pennsylvania and Ohio can boast census numbers larger than that figure. The rate works out to about in five homeowners with a mortgage (if you add in those homeowners with 20% or less equity in their homes, called the “effective” negative equity rate, that number doubles to two in five homeowners). By the dollars, homeowners in the U.S. were underwater by $805 billion as of the end of third quarter of 2013.
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