A research firm said today that nearly 10 percent of the outstanding mortgages in the Birmingham-Hoover metropolitan area are “underwater,” meaning the borrowers owe more on their loans than their property is worth.
First American Core-Logic said that 12,777, or 9.6 percent, of all properties with a mortgage in Alabama’s largest metro area are in a so-called “negative equity” position. An additional 7,712 mortgages, or 5.8 percent, are in near negative equity in the Birmingham-Hoover area, the firm said.
Across the U.S., more than 8.3 million mortgage holders owed more on their loans in the fourth quarter than their property was worth as the recession cut home values by $2.4 trillion last year, First American CoreLogic said. That equals 20 percent of all mortgages, it said. Another 2.2 million borrowers will be underwater if home prices decline another 5 percent, the firm said.
The firm’s report says about 9 percent of outstanding mortgages in Alabama are underwater, a low percentage among the states. Nevada had the highest figure — 55 percent, the firm said.
