The current number of residential properties with negative equity slipped down to 10.9 million (22.7%) in the first quarter of 2011 from 11.1 million (23.1%) in the fourth quarter of 2010. Cities with the largest shares of residential properties with negative equity include Greeley, CO (38%), Boise, ID (36%), and Atlanta, GA (35%).
“Not only was the decline in prices a clear force driving negative equity, but borrower equity extraction also significantly increased the risk of a negative equity position. While only 18 percent of borrowers with no home equity loans were underwater at the end of the first quarter, 38 percent of borrowers with home equity loans were in a negative equity position. Over 40 percent (4.5 million) of all negative equity borrowers have home equity loans.” http://bit.ly/jvBBps