Report: 19 percent of Pa.'s underwater mortgages resurfacing
Pennsylvania is in the upper half of states in the number of “deeply underwater” mortgages, or those where homeowners owe at least 25 percent or more than their properties are worth.
California-based RealtyTrac Inc. said today that 306,227 Pennsylvania homeowners, or 16 percent, remain in that category as of the beginning of September. There are 18 states with lower percentages and three others — Massachusetts, Utah and Wisconsin — with a comparable percentage of deeply underwater mortgages.
Nationally, there are 10.7 million, or 23 percent, according to RealtyTrac.
States with the highest percentage of deeply underwater homes included Nevada at 46 percent, Illinois and Florida at 40 percent and Michigan at 38 percent.
Meanwhile, another 8.3 million, or 18 percent, are either slightly underwater or just above water, putting them on track to have enough equity to sell sometime in the next 15 months without resorting to a short sale. RealtyTrac defines that group as those with a loan-to-value ratio from 90 to 110 percent.
“Steadily rising home prices are lifting all boats in this housing market and should spill over into more inventory of homes for sale in the coming months,” said Daren Blomquist, RealtyTrac’s vice president.
In Pennsylvania, the resurfacing equity percentage is 19 percent, or 350,175 properties, according to RealtyTrac.
There are 7.4 million homeowners with a mortgage that had 50 percent equity or more, representing 16 percent of all homeowners with a mortgage. In Pennsylvania, the equity rich make up 381,474 homeowners, or 20 percent.