"Nearly 11 percent of all homes with a mortgage in the Provo-Orem area are in negative equity in the fourth quarter of 2008, and that number is likely to grow, according to a report released Wednesday by First American CoreLogic, a Santa Ana, Calif.-based seller of mortgage and economic data. In the third quarter, 7.9 percent were upside down.
Negative equity, also referred to as underwater or upside down, means borrowers owe more on their mortgage than their home is worth.
Of a total of 72,522 Provo-Orem properties with a mortgage in the fourth quarter, 7,713 were underwater. In Salt Lake City, 27,031, or 15.2 percent, of all properties with a mortgage were in negative equity in the fourth quarter.
"Once a homeowner goes into default, nine times out of 10, their homes will have a new owner within 12 to 14 months," he said. Eagle Mountain and Saratoga Springs, located in the former fast-growing north Utah County area, had the highest number of default notices in 2008, he said (Jason Eldredge, vice president of sales with Newreach. The Salt Lake City company tracks pre-foreclosure statistics in Utah)." -Daily Herald
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