New Report Says More Homeowners In Illinois Have Mortgages Higher Than What Home Could Fetch On Market

(Illinois News Network) – Illinois has more homeowners with mortgages that are higher than what their homes could fetch on the market than nearly any other state – and the problem is getting worse.

In the second quarter of 2018, 18 percent of Illinois’ homes were considered seriously underwater, or mortgaged for more than 25 percent of the potential sale price of the house. That’s according to ATTOM Data Solutions’report released Thursday. That’s higher than it has been since 2016. In some of Chicago’s western suburbs, more than 70 percent of homeowners owe 25 percent more than the price their home would sell for.

The national average for the second quarter was 10 percent.

Many of those areas are seeing big home value deficits because buyers pulled the trigger at the height of home prices. Geneva (76.0 percent); Elgin (75.5 percent); St. Charles (73.6 percent); and Sugar Grove (71.9 percent) were behind only Springfield, Missouri, in terms of percentage of residents more than 25 percent underwater on their homes.

“Even though those markets are recovering and home prices are coming back slowly, they haven’t recovered the equity loss during the downturn,” ATTOM vice president Daren Blomquist said.

Twelve of the top 20 markets for percentage of seriously underwater homes were in Illinois.

State

County

City

Population

Units

Underwater x 125%

Percentage

Missouri

Greene

Springfield

11,867

4,768

2,443

81.0%

Illinois

Kane

Geneva

29,127

10,579

6,514

76.0%

Illinois

Kane

Elgin

20,761

7,209

4,843

75.5%

Illinois

Kane

Saint Charles

26,334

8,427

5,325

73.6%

Illinois

Kane

Sugar Grove

11,877

4,287

2,566

71.9%

New Jersey

Mercer

Trenton

25,906

9,815

2,354

71.5%

Missouri

Greene

Springfield

22,857

9,448

3,840

71.5%

Illinois

Kane

Elburn

10,169

3,636

2,093

71.2%

Missouri

Jasper

Webb City

14,635

6,139

1,953

70.3%

Illinois

Kane

Saint Charles

31,047

12,850

5,477

67.6%

Illinois

Kane

Batavia

29,502

11,233

5,087

66.7%

Illinois

Kane

Dundee

15,705

6,490

2,849

66.2%

Pennsylvania

Clearfield

Du Bois

19,266

9,496

2,133

66.1%

Missouri

Greene

Republic

18,037

7,278

2,932

65.5%

Illinois

Kane

Hampshire

15,985

6,040

3,134

65.4%

Missouri

Saint Louis

Saint Louis

20,460

8,779

3,080

65.4%

Illinois

Kane

South Elgin

23,068

7,661

4,232

65.1%

Missouri

Jasper

Joplin

36,916

17,563

3,336

64.7%

Illinois

Cook

Harvey

29,826

14,140

2,561

64.6%

Illinois

Winnebago

Rockford

19,622

9,105

1,668

63.9%

Losses in population, seen in nearly every county in Illinois in 2017 Census reports, tend to push home values down since the demand for homes is slowed.

“It even makes it tougher for those who still own homes there to recover equity and, in fact, you may see them lose equity,” Blomquist said.

The city of Peoria, which saw the biggest percentage of population loss in 2017, had 46 and 29 percent of homes in it’s two zip codes register as seriously underwater.

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