From Inman:

More than 7.5 million single-family homes are worth less than what’s owed on their mortgages, and another 2.1 million were very close to being upside down at the end of September, according to an analysis by First American CoreLogic.

First American CoreLogic used automated valuation models to analyze its huge database of public records and produce what it claims is the industry’s first state-level assessment of households with negative equity (click to download spreadsheet).

The analyses, of 42 million properties with mortgages, found the states with the highest percentage of upside-down mortgages were Nevada (48 percent), Michigan (39 percent), Florida (29 percent), Arizona (29 percent), California (27 percent), and Georgia (23 percent).

Those six states are home to about one in three U.S. mortgages, but account for more than 58 percent of the nation’s upside-down homes, First American CoreLogic estimated.

As property values continue to depreciate, the number of homes underwater will only increase.

VI, originally uploaded by Mr Karanka.