CoreLogic: Negative equity loans denting sales 
Most underwater borrowers stuck in high-rate loans
By Inman News, Tuesday, September 13, 2011.
Nearly three quarters of the 10.9 million homeowners who owe more than their homes are worth are paying higher, above-market interest rates on their mortgages, according to the latest numbers from real estate information and analytics provider CoreLogic.
Nevada had the highest share of negative equity mortgages at the end of the second quarter, with 60 percent of borrowers underwater, followed by Arizona (49 percent), Florida (45 percent), Michigan (36 percent) and California (30 percent).
The average negative equity share for the top five states has declined over the past year, from 41 percent to 38 percent, primarily as a result of foreclosures, CoreLogic said.
But CoreLogic's analysis found that the federal homebuyer tax credit that expired last year contributed to a spike in loans with a high loan-to-value (LTV) ratio in 2009.
In the span of six months in 2009, the share of loans made with LTVs between 90 percent and 100 percent increased from 13 percent to 18 percent, "which is large given such a small time period," CoreLogic said.
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