10 Cities With The Most 'Underwater' Mortgages
Florida and Texas are hotspots for homeowners with "underwater" mortgages, meaning they owe more on their mortgage than their home is worth.
Most homeowners have comfortable mortgage equity cushions, boosting their net worth and allowing access to low-cost borrowing. However, recent buyers in certain areas face the opposite experience, with their homes worth less than their mortgage balances.
This phenomenon is also known as negative equity. In contrast, those with positive equity are experiencing a surge in home equity, with
home equity climbing nearly 80% since early 2020, reaching $35 trillion in housing wealth.
Unfortunately, this wealth is not evenly distributed across the country, with some pockets experiencing significant negative equity.
Author's summary: Homeowners in certain US cities face negative equity.