Nearly One in Four Home Borrowers Is Under Water (Negative Equity)

Nearly 10.7 million households (23%) had negative equity in their homes in the third quarter, according to First American CoreLogic, a real-estate information company based in Santa Ana, CA. First American reports that home prices have fallen so far that 5.3 million U.S. households are tied to mortgages that are at least 20% higher than their home's value

Homeowners in Nevada, Arizona, Florida, and California are more likely to be deeply under water, according to First America. In Nevada, for example, nearly 30% of borrowers owe 50% or more on their mortgage than their home is worth.

What state has the largest percentage of underwater homes? Answer: Nevada with 65%, which is followed by Arizona (47.6%), Florida (44.7%), and California (34.7%). Where does Missouri fit into the scheme? Answer: 13.8% or 1 in every 7 homes (negative equity).

Source: "Wall Street Journal"