Homeowners in the Sacramento metropolitan area are underwater by $20.7 Billion. This is according to a national study conducted by Zillow, a Seattle based real estate data company.

Nationally, the Zillow reported that 31.4% of homes were underwater through the first quarter of this year.

In the 4 county Sacramento metro area, 51.2% of homes owed more than the house is worth.

Sacramento county had the highest at 57.5% with negative equity, followed by Yolo (44.7%), Placer (41.3%), and El Dorado (36.7%).

Collectively nationwide, underwater homeowners owed $1.2 Trillion more than their homes were worth.

However, Zillow says, that many underwater homeowners are still paying their mortgages on time – only 9% are more than 90 days delinquent, which is quite a large number. Nationally, 10% are delinquent.

The equity lost will take many years to come back the loan programs that caused this mess are no longer available. Based on this, it appears that Short Sales and potential strategic foreclosures will be with us for quite a while.