The Real Estate Bloggers

Top 10 Cities With Most Underwater Homes in America

Posted: 13 Nov 2010 06:52 AM PST

Underwater Mortgage Definition: A mortgage, or mortgages, which is higher than the market value of the home that is securing it.

After the housing bubble popped many cities in the country are still left with a terrible amount of negative equity. When families are tied to a home that is worth less than they have borrowed it puts a great deal of stress on the families. It also takes away their mobility.

If a family can not sell their home so they can move for a better opportunity elsewhere, they are essentially economically stagnant. Or they have to make a tough decision to move elsewhere.

Now look at a city like Las Vegas, Nevada. 80.2% of the mortgage in the city are underwater. That means that if a family wanted to move they would have to bring money to the closing, default on the mortgage, or short sell the house and convince the bank to take the loss.

None of these options is what the homebuyer planned when they made the purchase. Yet in these 10 cities, these are the choices many families are forced to consider.

Top 10 Cities With Most Underwater Homes in America

Las Vegas, Nevada 80.2%
Phoenix, Arizona 68.4%
Reno, Nevada 64.4%
Orlando, Florida 64.2%
Stockton, California 57.5%
El Centro, California 55.0%
Modesto, California 53.9%
Lakeland, Florida 53.7%
Port St. Lucie Florida 52.0%
Fort Myers, Florida 51.6%

The list was compiled by Business Insider with data by Zillow

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Top 10 Cities With Most Underwater Homes in America