Negative equity homes increase in third quarter

October 31, 2008 02:20PM

Almost 20 percent of mortgage borrowers nationwide had
negative equity in the third quarter, owing more on their loans than their home is worth, according to First American CoreLogic. Owners of more than 7.5 million properties have negative equity, and another 2.1 million homes will follow if home prices decline another 5 percent, the real estate data firm said. Six states account for almost 60 percent of the underwater homes, led by Nevada and Michigan. New York had the lowest share of homes with negative equity.

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