12 States Where Homeowners Are Deep Underwater On Their Mortgages

new hampshire

Photo: Alex Barth via flickr

1.4 million borrowers moved to positive equity (where homeowners owe less on their mortgage than their home is worth) in the year through the end of Q3.  This is according to CoreLogic’s latest negative equity report.But a whopping 10.7 million or 22 per cent of all residential properties with mortgages were underwater by the end of Q3.

“The substantive gain in house prices made in 2012, partly due to tight inventory caused by negative equity’s lock-out effect, has paradoxically alleviated some of the pain,” Mark Fleming, chief economist for CoreLogic said in a press release.

We drew on CoreLogic’s report to highlight the 12 states that are deepest in negative equity. We ordered them based on the number of underwater mortgages as a share of total mortgages (i.e. negative equity share).

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.

New Hampshire

Negative equity share:
20. 3 per cent

Total mortgages:
223,457

Overall loan-to-value ratio:
71.6 per cent

Source: CoreLogic

Rhode Island

Negative equity share:
22.1 per cent

Total mortgages:
229,646

Overall loan-to-value ratio:
65.0 per cent

Source: CoreLogic

Idaho

Negative equity share:
22.3 per cent

Total mortgages:
247,881

Overall loan-to-value ratio:
73.9 per cent

Source: CoreLogic

Maryland

Negative equity share:
22.9 per cent

Total mortgages:
1,350,922

Overall loan-to-value ratio:
69.4 per cent

Source: CoreLogic

Ohio

Negative equity share:
23.8 per cent

Total mortgages:
2,152,771

Overall loan-to-value ratio:
75.8 per cent

Source: CoreLogic

Illinois

Negative equity share:
25.4 per cent

Total mortgages:
2,231,876

Overall loan-to-value ratio:
74.6 per cent

Source: CoreLogic

California

Negative equity share:
28.3 per cent

Total mortgages:
6,784,724

Overall loan-to-value ratio:
69.5 per cent

Source: CoreLogic

Michigan

Negative equity share:
32.0 per cent

Total mortgages:
1,362,525

Overall loan-to-value ratio:
80.8 per cent

Source: CoreLogic

Georgia

Negative equity share:
35.6 per cent

Total mortgages:
1,614,579

Overall loan-to-value ratio:
83.5 per cent

Source: CoreLogic

Arizona

Negative equity share:
38.6 per cent

Total mortgages:
1,320,712

Overall loan-to-value ratio:
85.3 per cent

Source: CoreLogic

Florida

Negative equity share:
42.1 per cent

Total mortgages:
4,203,696

Overall loan-to-value ratio:
85.5 per cent

Source: CoreLogic

Nevada

Negative equity share:
56.9 per cent

Total mortgages:
554,888

Overall loan-to-value ratio:
109.0 per cent

Source: CoreLogic

Now see which housing markets made a comeback in 2012...

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