Michigan homeowners continue to struggle with underwater mortgages.
Realty Trac reports today that 38% of Michigan homeowners owe at least 25% more on their mortgages than their homes are actually worth.
Michigan trails only Nevada, Illinois and Florida for the percentage of home mortgages that are deeply underwater.
Realty Trac’s Daren Bloomquist says more homeowners in those states may be underwater on their mortgages, but home values are also rising faster than in Michigan.
“We’re actually seeing in Michigan there’s 25 thousand more people now than there were a year ago…based on looking at their estimated home values compared to the outstanding mortgages,” says Bloomquist.
Bloomquist says there’s a risk if these homeowners don’t see these numbers improve.
“If that continues the risk is they will say ‘Oh, I’m not going to continue making my mortgage payment on a home when I’m never going to build wealth in that home…build equity in that home,” says Bloomquist.
Detroit ranks sixth on Realty Trac’s list of major housing markets for the percentage of homeowners with deeply underwater home mortgages.