Underwater mortgages grow in St. Louis

According to a recent report by CoreLogic, 2,100 homeowners in the St. Louis had their mortgages go 'underwater' at the end of 2010, meaning they owed more on their mortgage than their home's value.

The addition brought the total number of underwater homeowners in the area to its highest number since CoreLogic has been tracking the information - 97,700, which comprised about 17 percent of all homeowners in the area.

For many St. Louis homeowners, the 'upside down' mortgages mean moving is not a viable option and may not be for a long period of time.

"Negative equity holds millions of borrowers captive in their homes, unable to move or sell their properties," said Mark Fleming, chief economist with CoreLogic. "Until the high level of negative equity begins to recede, the housing and mortgage finance markets will remain very sluggish."

Still, compared to nationwide statistics, the real estate market in St. Louis could be performing worse. CoreLogic's data showed that 23 percent of all residential borrowers across the country owe more on their mortgages than their homes are worth, resulting in a combined value of $750 billion in negative equity.  

More News