At Least Half of Homes ‘Seriously Underwater’ in These Zip Codes
(Bloomberg) -- A decade after the recession, more than one in 11 mortgaged properties in the U.S. is considered "seriously underwater," according to the year-end home equity report by ATTOM Data Solutions.
This dreaded classification applies when 25 percent or greater is owed than the home’s market value -- a loan-to-value ratio of at least 125 percent in industry jargon. More than five million U.S. properties fit the bill.
In 27 zip codes, with a minimum of 2,500 mortgaged properties in each, more than half are "seriously underwater."
At the end of 2018, the most "seriously underwater" zip code was Trenton’s 08611 -- in New Jersey’s capital -- where 70.3 percent of mortgaged homes were valued at $100 or less for every $125 owed. The St. Louis zip code 63137 follows at 64.8 percent. Zip codes 60426 in Harvey, Illinois (62.3 percent); 38106 in Memphis, Tennessee (60.5 percent) and 61104 in Rockford, Illinois (59.6 percent) round out the worst five.
Additionally, the cities of Chicago, Cleveland, Atlantic City, Detroit and Virginia Beach show pockets of severely distressed mortgaged housing stock.
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