A summary of Second Quarter 2009 Negative Equity Data from First American CoreLogic shows that Nearly One-Third Of All Mortgages Are Underwater.



• More than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, were in negative equity position as of June 30, 2009 according to newly released data from First American CoreLogic. As of June 2009, there were an additional 2.5 million mortgaged properties that were approaching negative equity. Negative equity and near negative equity mortgages combined account for nearly 38 percent of all residential properties with a mortgage nationwide.



• The aggregate property value for loans in a negative equity position was $3.4 trillion, which represents the total property value at risk of default. In California, the aggregate value of homes that are in negative equity was $969 billion, followed by Florida ($432 billion), New Jersey ($146 billion), Illinois ($146 billion) and Arizona ($140 billion). Los Angeles had over $310 billion in aggregate property value in a negative equity position, followed by New York ($183 billion), Miami ($152 billion), Washington, DC ($149 billion) and Chicago ($134 billion).



• The distribution of negative equity is heavily skewed to a small number of states as three states account for roughly half of all mortgage borrowers in a negative equity position. Nevada (66 percent) had the highest percentage with nearly two‐thirds of mortgage borrowers in a negative equity position. In Arizona (51 percent) and Florida (49 percent), half of all mortgage borrowers were in a negative equity position. Michigan (48 percent) and California (42 percent) round out the top five states.

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Negative Equity Share

Property Values and Loan-To-Equity Ratios

Mortgage Facts and Figures - Select States

California has $2.4 trillion in mortgages debt. 42.0% of the properties have negative equity.

Florida has $923 billion in mortgage debt. 49.4% of the properties have negative equity.

Illinois has $447 billion in mortgage debt. 29.4% of the properties have negative equity.

Arizona has $298 billion in mortgage debt. 51.0% of the properties have negative equity.

Nevada has $149 billion in mortgage debt. 65.6% of the properties have negative equity.

Nationwide there is $10.1 trillion in mortgage debt. 32.2% of the properties have negative equity.37.6% of the properties have "near-negative" equity.



32-37% Of All Mortgage Holders Are Stuck, Unable To Sell

Foreclosure Wave Is About To Hit

California Foreclosures

Nationwide Foreclosures

California Pent Up Foreclosure Demand

Foreclosure supply (yellow) has been artificially held back, which has allowed the low end of the real estate market to perform very well over the past several months. But the reservoir of foreclosures (blue + pink) is getting full and at some point the dam will crack and break.

Six Reasons the Dam Will Break Sooner Rather Than Later

The number of people underwater in their mortgages is high and rising fast.

The reported nationwide unemployment figure is 9.4% with the real unemployment above 16% and rising.

Wages are falling.

The jobs market will suffer losses for another year.

Notices of Default and Trustee Sales are high and rising.

Social attitudes towards walking away and bankruptcy have changed.

