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One Third of Chicago Homes Worth Less Than Their Mortgage

By aaroncynic in News on Nov 11, 2010 4:00PM

Almost a third of Chicago homeowners are “underwater,” according to a report real estate company Zillow.com. Progress Illinois reports that Zillow released data suggesting that one in three single family homes in Chicago are worth less than the price of their current mortgage. The current median value on a single family home in the Chicago area is $189,000, slightly above the national average of $181,000.

Underwater homeowners are usually the first group of people to fall into foreclosure. According to the report, 1.2 out of every 1,000 homes nationally went into foreclosure last September and more than a quarter of homes sold at a loss. While some programs like the federal Home Affordable Modification Program exist to alleviate financially burdened homeowners, they haven't been able to keep pace with the ongoing crisis.