Report: One In Four Connecticut Homes “Underwater”

One in four homes with a mortgage in Connecticut had a loan balance that is higher than what the property was worth in the second quarter, according to new figures released today.

Zillow.com reported that 24.8 percent of homes with mortgages in the state had loans that were “underwater” as of June 30, totaling nearly $12.1 billion.

Though still high, the health of home values improved a bit in the quarter ended June 30, easing from 25.6 percent in the first quarter, Zillow.com said.

Of the 168,933 homes with negative equity in the most recent quarter, about 11 percent, or 18,856, had mortgages that were seriously delinquent — 90 or more days past due — or in foreclosure, Zillow.com reported.

The state is ahead of the country. Nationally, Zillow.com reported that 30.9 percent of U.S. homeowners have an underwater mortgage. This is down from 31.4 percent in the first quarter.

Hartford County did better than the state as a whole in the second quarter. According to Zillow.com, 22 percent of homes had underwater mortgages, with negative equity totalling $2 billion. Hartford County also showed some improvement, down from 23.3 percent in the first quarter.

Of the 36,763 homes with negative equity in Hartford County, 3,704, or a little over 10 percent, had mortgages seriously delinquent or in foreclosure.

Three counties saw an increase in the percentage of homes underwater — Windham, Tolland and Middlesex — in the second quarter. Windham saw the biggest jump, to 39.1 percent, from 37.7 percent in the previous quarter, according to Zillow.com.