Almost six of every ten homeowners in Sacramento County owe more on their loans than their homes are worth, according to a new analysis from real estate tracking firm Zillow.
When homeowners walk away from their loans or pursue a short sale -- a common occurrence in Sacramento -- they push home prices lower, feeding a cycle that has hampered the Sacramento real estate market for years.
This map from Zillow shows the proportion of homes with negative equity nationwide.
Source: Zillow, The U.S. Housing Crisis: Where are home loans underwater?
Zillow's methodology: "Negative equity is calculated by matching the estimated value of a home to all outstanding mortgage debt and lines of credit associated with the home, including home equity lines of credit and home equity loans, supplied by TransUnion."
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