10 States Where Homeowners Are Deep Underwater

negative equity, mortgages, housing

Photo: John Moore/Getty Images

1.3 million homeowners emerged from negative equity, which occurs when borrowers owe more on their mortgage than their home is worth, in the first half of the year, according to CoreLogic’s latest foreclosure report.But 10.8 million or 22.3 per cent of all residential mortgages were still in negative equity in the second quarter.

This is an important indicator to watch, since borrowers who are under water are more likely to default on mortgages and could hurt the fledgling housing recovery.

We drew on Corelogic’s data to highlight the 10 states with the highest negative equity in the second quarter.

Rhode Island

Negative equity share:
22.6 per cent

Total mortgages:
229,101

Overall loan-to-value ratio:
65.6 per cent

Source: CoreLogic

Maryland

Negative equity share:
23.3 per cent

Total mortgages:
1,353,735

Overall loan-to-value ratio:
69.5 per cent

Source: CoreLogic

Ohio

Negative equity share:
24.1 per cent

Total mortgages:
2,158,189

Overall loan-to-value ratio:
76.0 per cent

Source: CoreLogic

Illinois

Negative equity share:
25.8 per cent

Total mortgages:
2,236,587

Overall loan-to-value ratio:
74.8 per cent

Source: CoreLogic

California

Negative equity share:
29.0 per cent

Total mortgages:
6,790,527

Overall loan-to-value ratio:
70.0 per cent

Source: CoreLogic

Michigan

Negative equity share:
32.8 per cent

Total mortgages:
1,365,341

Overall loan-to-value ratio:
81.6 per cent

Source: CoreLogic

Georgia

Negative equity share:
35.8 per cent

Total mortgages:
1,618,193

Overall loan-to-value ratio:
83.9 per cent

Source: CoreLogic

Arizona

Negative equity share:
39.7 per cent

Total mortgages:
1,314,964

Overall loan-to-value ratio:
86.1 per cent

Source: CoreLogic

Florida

Negative equity share:
42.7 per cent

Total mortgages:
4,222,134

Overall loan-to-value ratio:
86.0 per cent

Source: CoreLogic

Nevada

Negative equity share:
58.6 per cent

Total mortgages:
555,772

Overall loan-to-value ratio:
111.7 per cent

Source: CoreLogic

Now see which cities are already being crushed by foreclosures ...

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