Last Updated Apr 26, 2011 4:43 PM EDT
U.S. homeowners who are regularly making mortgage payments, and have no current desire to buy or sell, may still have a home equity crisis (or complete lack thereof) on the horizon. That could spell big trouble for anyone who used their home as a piggy bank, expecting future home value appreciation would make things right.
According to CoreLogic's data, a full 23 percent of borrowers are considered to be "underwater" in their homes, which means that they currently owe more (sometimes significantly more) to their lender than the properties are worth.
How much underwater? CoreLogic says U.S. homeowners have a whopping $750 billion in negative equity.
That a quarter of the nation's homeowners are underwater with their mortgages is disturbing enough, but if you live in Florida, Michigan or the Southwest, the situation is much more dire. Per CoreLogic, here are the top five states that, on average, contain the most underwater properties.
Top 5 States for Underwater Mortgages
- Nevada: 65 percent of homeowners are underwater
- Arizona: 51 percent of homeowners are underwater
- Florida: 47 percent of homeowners are underwater
- Michigan: 36 percent of homeowners are underwater
- California: 32 percent of homeowners are underwater
Still, it's tough to swallow the fact that two-thirds of Nevada's borrowers, who may have never been in trouble with their mortgages, still have less than nothing to show for their investment - and would have a doozy of a time selling their property.
The numbers are awful, but it seems we haven't hit bottom yet. CoreLogic's report mirrors an industry consensus that home prices will fall an additional 5 percent to 10 percent in 2011, with a similar rise in negative equity averages.
If you sold your house today, would you turn a profit?
To view the full CoreLogic report, click here.
More on MoneyWatch:
- Loan Modification Help for Military Servicemembers
- Want a Mortgage? Is Your FICO Credit Score 780?
- HUD 2012 Budget Highlights: You're Screwed
- Report: Smaller FHA Loans Reduce Taxpayers' Risk
- Home Values Decline Further in 4Q 2010
- Biggest Losers and Biggest Winners: Where Home Values Are Rising And Falling
- Top 10 States For Foreclosures in 2010
- Foreclosure Lawsuit Upset: Court Rules Against Wells Fargo and US Bancorp
- FHA's Reverse Mortgage Standards Get Tougher in Response to Increased Delinquency
- Pending Home Sales Up in November, Realtors Provide Economic Forecast for 2011
- 10 Best Cities to Rent Rather Than Buy
- Home Improvement: Remodeling Projects with Biggest Payoff
- Most Expensive Housing Markets In America
- Top 5 Markets For Great Real Estate Deals
- Housing Prices Rebounding Here
- Tea Party: Don't Let Renters Vote
- Are You Getting Screwed by Your Lender?
- Foreclosure Process Shows Mortgage Lending Isn't The Only Problem
- Real Estate Crisis Continues - Non-Residential Construction to Fall 20% by End of 2010
- Jobs, Small Businesses, Payrolls, and the Economy
- Loan Modification Hell: New Solutions To Avoid Losing Your Home
- Bank of America, Ally Bank Extend Foreclosure Freeze to All 50 States
Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and The Equifax Personal Finance Blog, and is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.