Industry NewsMarkets & Economy

Report: 1 in 4 loans underwater

70% of Nevada mortgages exceed home's value

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Falling home prices left nearly one in four U.S. homeowners with mortgages owing more than their homes were worth at the end of 2009, according to a new report from First American CoreLogic.There were 11.3 million homes "underwater" at the end of the year -- 24 percent of all residential properties with mortgages -- up from 10.7 million or 23 percent of loans at the end of the third quarter, First American CoreLogic said. The net increase in the number of negative equity borrowers in the fourth quarter was 620,000, with the largest percentage increases occurring in Nevada, Georgia and Arizona.Nevada had the highest percentage of negative equity, with 70 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (48 percent), Michigan (39 percent) and California (35 percent). Among the top five states, the average negative equity share was 42 percent, compared to 15 percent for the remaining 45 states.In terms of raw numbers, California (2...