The Real Deal Miami

Underwater mortgages on the decline in South Florida

Homes with negative equity fell to 22 percent in the second quarter
August 26, 2014 03:00PM

underwater-mortgageAlthough home price increases have slowed in recent months, underwater mortgages have fallen dramatically across South Florida.

In the second quarter, underwater mortgages fell to 22 percent from 34 percent a year ago, according to Zillow data cited by the Sun-Sentinel. And Zillow predicts that negative equity will fall to at least 19 percent over the next year.

Underwater mortgages peaked in the fourth quarter of 2011, when close to half the mortgaged homes in South Florida were worth less than what was owed. [Sun-Sentinel] Christopher Cameron