Report: A third of Ill. homes ‘deeply underwater’

A new report says almost one-third of Illinois homes are “deeply underwater” meaning that they’re worth at least 25 percent less than what’s owed on the loans.

The report released Thursday by Irvine, Calif.-based RealtyTrac says that represents almost 775,000 Illinois homes. The report is based on data from December.

Only Nevada and Florida fare worse, with 38 percent and 34 percent of homes deeply underwater, respectively.

But the report has some good news.

Nationally, the percentage of deeply underwater homes is falling.

RealtyTrac says rising home prices are providing some relief. It also says that the number of homes with at least 50 percent equity grew during the fourth quarter.

Twelve percent of Illinois homes meet that threshold and are considered equity rich.