12 States Where Homeowners Are Deep Underwater

foreclosure, negative equity

Photo: John Moore/Getty Images

The housing market has been flashing signs of recovery. Another positive sign is the decline in the number of residential properties with a mortgage in negative equity.But that’s not to say negative equity isn’t a huge problem.

11.4 million or 23.7 per cent of all residential properties with a mortgage were in negative equity – when borrowers owe more on their mortgages than their property is worth –  in the first quarter, according to a new report by Corelogic.

We drew on CoreLogic data to rank the 12 states with the most highest negative equity share in the first quarter of 2012. On average, the five worst states had a combined average of 44.5 per cent of mortgages underwater.

Note: Loan-to-Value (LTV) ratio is a measure used by financial institutions to gauge risk before approving a mortgage. The higher the LTV ratio, the higher the risk and the more expensive the loan.

Virginia

Negative equity share:
22.3%

Total mortgages:
1,317,086

Overall loan-to-value ratio:
71.0%

Source: CoreLogic

Rhode Island

Negative equity share:
23.3%

Total mortgages:
227,892

Overall loan-to-value ratio:
66.1%

Source: CoreLogic

Ohio

Negative equity share:
24.6%

Total mortgages:
2,158,099

Overall loan-to-value ratio:
76.4%

Source: CoreLogic

Maryland

Negative equity share:
24.8%

Total mortgages:
1,353,647

Overall loan-to-value ratio:
70.5%

Source: CoreLogic

Idaho

Negative equity share:
26.3%

Total mortgages:
244,713

Overall loan-to-value ratio:
74.0%

Source: CoreLogic

Illinois

Negative equity share:
28.0%

Total mortgages:
2,231,863

Overall loan-to-value ratio:
76.7%

Source: CoreLogic

California

Negative equity share:
30.5%

Total mortgages:
6,786,583

Overall loan-to-value ratio:
71.0%

Source: CoreLogic

Michigan

Negative equity share:
35.6%

Total mortgages:
1,350,943

Overall loan-to-value ratio:
83.5%

Source: CoreLogic

Georgia

Negative equity share:
37.2%

Total mortgages:
1,600,802

Overall loan-to-value ratio:
84.1%

Source: CoreLogic

Arizona

Negative equity share:
43.4%

Total mortgages:
1,291,870

Overall loan-to-value ratio:
89.0%

Source: CoreLogic

Florida

Negative equity share:
45.1%

Total mortgages:
4,219,912

Overall loan-to-value ratio:
88.1%

Source: CoreLogic

Nevada

Negative equity share:
61.2%

Total mortgages:
555,458

Overall loan-to-value ratio:
114.0%

Source: CoreLogic

Now take a look at foreclosures across the country...

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.