There’s no beachfront property in Nevada, but 70 percent of it is underwater.
Yep, a staggering 70 percent of residential properties with mortgages were underwater as of the end of 2009, meaning the mortgage balance exceeded the property value, according to the latest report from First American CoreLogic.
Arizona wasn’t far behind with 51 percent of mortgage properties underwater, followed by Florida (48%), Michigan (39%), and California (35%).
The average negative equity share was 42 percent for these top five states, while the nationwide share was just 15 percent.
California led the nation in terms of the number of negative equity mortgages with 2.4 million, followed by Florida with 2.2 million – the pair accounted for 41 percent of all negative equity loans.
In total, more than 11.3 million, or 24 percent, of all residential properties with mortgages were in a negative equity position as of year-end.
That’s up from 10.7 million, or 23 percent, as of the end of the third quarter of 2009.
An additional 2.3 million mortgages had less than five percent equity at year-end, meaning they were steadily approaching negative equity positions.
Together, negative equity and near-negative equity mortgages accounted for almost 29 percent of all residential properties with a mortgage nationwide.
That’s not good news, considering negative equity and mortgage default seem to go hand-in-hand…
Of course, of the over 47 million homeowners with a mortgage nationwide, the average loan to value ratio (LTV) is only 70 percent.