The 14 States Where Homeowners Are Drowning In Negative Equity


Photo: AP

10.9 million homeowners have mortgages underwater according to a new report by CoreLogic.In Q2, 22.5% of all residential properties with a mortgage are in negative equity i.e. owe more on their mortgages than their home. Just slightly lower than 22.7% the last quarter.

In the five worst states, 38% of all mortgages were in negative equity, compared to 41% a year ago. But that decline is largely attributed to foreclosures.

CoreLogic’s chief economist Mark Fleming said: “High negative equity is holding back refinancing and sales activity and is a major impediment to the housing market recovery.”

We’ve ranked the 14 states that have over 20% negative equity. We also included each state’s overall loan-to-value (LTV) ratio. Corelogic found that borrowers with the highest LTV ratios tended to have the highest mortgage rates.

#14 Colorado

Negative equity share: 20.6%

Total mortgages: 1.15 million

Overall loan-to-value ratio: 72.3%

Source: CoreLogic

#13 Utah

Negative equity share: 20.9%

Total mortgages: 475.569

Overall loan-to-value ratio: 72.9%

Source: CoreLogic

#12 Rhode Island

Negative equity share: 21.5%

Total mortgages: 229,608

Overall loan-to-value ratio: 63.7%

Source: CoreLogic

#11 Illinois

Negative equity share: 21.7%

Total mortgages: 2.24 million

Overall loan-to-value ratio: 72.4%

Source: CoreLogic

#10 Ohio

Negative equity share: 22.3%

Total mortgages: 2.2 million

Overall loan-to-value ratio: 75.8%

Source: CoreLogic

#9 Idaho

Negative equity share: 23%

Total mortgages: 252,108

Overall loan-to-value ratio: 71.7%

Source: CoreLogic

#8 Virginia

Negative equity share: 23.3%

Total mortgages: 1.3 million

Overall loan-to-value ratio: 71.7%

Source: CoreLogic

#7 Maryland

Negative equity share: 23.6%

Total mortgages: 1.36 million

Overall loan-to-value ratio: 70.3%

Source: CoreLogic

#6 California

Negative equity share: 30.2%

Total mortgages: 6.8 million

Overall loan-to-value ratio: 70%

Source: CoreLogic

#5 Georgia

Negative equity share: 30.2%

Total mortgages: 1.6 million

Overall loan-to-value ratio: 80.9%

Source: CoreLogic

#4 Michigan

Negative equity share: 35.6%

Total mortgages: 1.38 million

Overall loan-to-value ratio: 84%

Source: CoreLogic

#3 Florida

Negative equity share: 45.1%

Total mortgages: 4.37 million

Overall loan-to-value ratio: 87.8%

Source: CoreLogic

#2 Arizona

Negative equity share: 48.7%

Total mortgages: 1.3 million

Overall loan-to-value ratio: 93.1%

Source: CoreLogic

#1 Nevada

Negative equity share: 60.4%

Total mortgages: 566,564

Overall loan-to-value ratio: 112.7%

Source: CoreLogic

Now here's why negative equity slipped...

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