More than 15.2 million mortgages - 32.2% of all US mortgages - are underwater
According to a report by First American CoreLogic, almost a third of all US home mortgages are underwater. For those unfamiliar with the term, it means that the mortgage amount owed on the home is worth more than the home is worth. Approximately 15.2 million homes are now in a negative equity position, which represents about 32.2% of all home loans. Negative equity is a strong cause of foreclosure according to Mark Fleming, chief economist at First American CoreLogic.
Which States are Underwater?
Over half of all negative equity mortgages can be accounted for by just 3 states: Nevada, Arizona and Florida. The second worst offenders are California and Michigan.
Although the negative equity rate has dropped from 32.5% at the end of March, it is by no means an indication of a recovering housing market.
