Roughly 23% of consumers with a residential mortgage are now "underwater" on their loans — especially if they bought a home between 2005 and 2008 and used an ARM, according to new figures released by First American CoreLogic. In a new report FACL says 10.7 million mortgagors have negative equity which is heavily concentrated in five states: Arizona, California, Florida, Michigan, and Nevada. FACL recently changed the methodology by which it calculates negative equity, which resulted in the numbers actually looking better. (Previously, it assumed that all HELOCs were tapped to their full extent.) Nevada leads the nation in negative equity (65% of mortgagors underwater) with Oklahoma having the lowest rate, 6.1%.
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