First American CoreLogic has released third-quarter data showing more than half of the mortgages in the San Bernardino-Ontario-Riverside metro area are “under water.” The report shows 54.41 percent (474,265) of all residential properties with a mortgage were in negative equity as of September. Negative equity means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both. Nationally, nearly 10.7 million, or 23 percent, of all residential properties with mortgages were in negative equity as of September.
The distribution of negative equity is heavily concentrated in five states: Nevada (65 percent), Arizona (48 percent), Florida (45 percent), Michigan (37 percent) and California (35 percent). California (2.4 million) and Florida (2 million) had the largest number of negative equity mortgages, accounting for 42 percent of all negative equity loans.
According to the company’s data, the average value for all properties with a mortgage is $270,200, but properties in negative equity have an average value of $210,300 or 22 percent less. The average mortgage debt for properties in negative equity was $280,000 and borrowers that were in a negative equity position were upside down by an average of nearly $70,000.