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UPSIDE DOWN MORTGAGES, HOW MANY IN SOUTHERN CALIFORNIA?

By
Real Estate Agent with Robert Owen Deane Real Estate Broker


Upside down Mortgages, those homes with a lower value than the current market value of the home comprise 32.8 percent of all mortgages in the State of California, according to a recent report by CoreLogic. An additional 4.1 percent of mortgages are within five percent of being into negative equity.

California ranks fourth in the Nation in loan’s with negative equity (as percentage of total loans).  Nevada, Arizona, and Florida all have a high percentage. In total an estimated 2,258,800 homes in California have homes with negative mortgages. An addition 285,800 have near negative equity.

What is taking place in Southern California?

The US Census estimates that 35.5 percent of the homes in the United States are owned free and clear and that an additional 2.2 percent have only home equity loans. This figure is significant and while I lack information at a County level, if gives us some indication of the real impact of negative equity loans and foreclosures on our economy.

I estimate there are approximately  2.5 million homes in Southern California with mortgages and that (based on the National average) that we have 927,000 mortgages with negative equity. As of September 2010 there were 195,600 home in some form of foreclosure, 21 percent of the mortgages with negative equity.

There are a total of 195,000 home in some stage of Foreclosure in the six Southern California Counties. These Foreclosures represent 7.8 percent of the estimated homes with mortgages. The impact of foreclosures is most strongly felt in the Counties of the Inland Empire. An estimated 12.1 percent of all mortgages in San Bernardino and 11.6 percent in Riverside County are in some stage of foreclosure.

How many loans are in trouble, upside down mortgages

This final graph shows the estimated number of Up-Side-Down mortgages and Foreclosures by County. By this measure Los Angles, Orange and San Diego County are the center of negative equity loans. This is of course, just an estimate using national averages for homes owen free & clear and loans with negative equity. Look at these statistics as panting a picture rather than representing hard statistics.

Temecula’s Neighborhood Expert provides you with real information with no strings attached. Our market knowledges us better serve buyers selling their homes and buyers and investors seeking to buy a home.

How many mortgages have negative equity?

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Comments (2)

Carol West
Carol West Real Estate, LLC - Hillsboro, OR
Real Estate Agent, Hillsboro, Beaverton, Portland

Thanks for the post Robert & Deane - what a sad state of affairs for so many. The American Dream needs resuscitation.

Sep 11, 2010 11:21 AM
Robert Deane Exclusive Buyer's Broker - Agent
Robert Owen Deane Real Estate Broker - Newport Beach, CA

Carol I can't agree with you more. You will be happy to hear that Oregon is doing far better than California. An estimated 15.7% of your loans have negative equity, half the number we re experiencing here in California.

The American Dream centers around home and family  & home prices are being driven down by greed and fraud. We all need to do some thing to put a stop to this. Look to my upcoming post on fraud in Short Sales and what is being put in place by the banks to stop it. 

 

Robert Deane 

Sep 12, 2010 07:26 AM