12 States Where Homeowners Are Deep Underwater

Despite the housing recovery, 10.4 million or 21.5 percent of all residential properties continued to be underwater at the end of Q4 2012, according to latest data by CoreLogic.

The value of negative equity – when homeowners owe more on their mortgages than their home is worth – fell to $628 billion, from $670 billion the previous quarter.

The Sandy states in particular continue to struggle.

1.7 million moved to positive equity in 2012, and the trend should continue into 2013. But some parts of the country will recover faster than others.

Using CoreLogic data, we ranked the 12 states that had the most underwater mortgages as a percentage of all mortgages i.e. negative equity share.

Note: Loan-to-Value (LTV) ratio is a measure used by financial institutions to gauge risk before approving a mortgage. The higher the LTV ratio, the higher the risk and the more expensive the loan.