Homes With Negative Equity at Risk

Daily Real Estate News  |   February 1, 2008

Home owners who are upside down in their mortgages are on shakier ground than other home owners in this tricky housing market.

Owing more than a home is worth makes it more likely that a home owner will simply walk away from a property.

The finding came from using RealtyTrac data, which tracks foreclosures, as well as data from multiple listing services, bank-owned property records, bankruptcy records, loan histories, tax liens, and lender information. Forbes magazine evaluated which counties in the country had the most foreclosures and the most negative equity loans.

Wayne County, Mich., home to Detroit, is first, with 10,622 homes in foreclosure with negative equity, 176 of which have more than $100,000 of negative equity. Clark County, Nev., home to Las Vegas, has 4,278 homes in foreclosure with negative equity.

Here’s the list of counties with the most foreclosures, including the percentage of homes entering foreclosure with negative equity:

1. Wayne County, Mich.: 38.6 percent
2. Clark County, Nev.: 22.9 percent
3. Maricopa County, Ariz.: 15.9 percent
4. Riverside County, Calif.: 18.7 percent
5. Los Angeles County, Calif.: 10 percent
6. Cook County, Ill.: 12.8 percent
7. Broward County, Fla.: 17.79 percent
8. Sacramento County, Calif.: 26.7 percent
9. Miami-Dad County, Fla.: 11.6 percent
10. San Bernardino County, Calif.: 18 percent

Source: Forbes, Matt Woolsey (02/01/08)