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Economy

Many Michigan homeowners are still deeply underwater on their mortgages

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Steve Carmody/Michigan Radio
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'Short sales' are the only solution for many homeowners 'deeply underwater' on their mortgages

Realty Trac reports nearly a third of Michigan homeowners owe 25 percent or more on their mortgages than their homes are actually worth.   

In December, 31% of Michigan homeowners were deeply underwater on their mortgages.  That’s down from 37% in January of 2013.

Nationally, 19% of homeowners are deeply underwater on their mortgages.

Daren Bloomquist with Realty Trac says many homeowners have been waiting a long time for their house to gain value.

“These are homeowners who are not able to really to participate (in the housing market),” says Bloomquist, “They don’t have equity in their home, so they are not able to become a move up buyer where they sell their home and move into a new home.”

Bloomquist expects the number of deeply underwater mortgages will slowly decrease as home prices rise and as underwater homeowners give up and let their home fall into foreclosure.

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