Somebody Throw Me A Rope Already

A pretty depressing set of numbers out from CalcRisk this evening, showing over 15 million mortgages are now in negative equity.

More than 15.2 million U.S. mortgages or 32.2 percent of all mortgaged properties were in negative equity position as of June 30, 2009 according to newly released data from First American CoreLogic. June’s negative equity share was slightly lower than the 32.5 percent as of the end of March 2009 and it reflects the recent flattening of monthly home price changes. As of June 2009, there were an additional 2.5 million mortgaged properties that were approaching negative equity and negative equity and near negative equity mortgages combined account for nearly 38 percent of all residential properties with a mortgage nationwide.

Here's the killer however:

Nevada (66 percent) had the highest percentage with nearly two‐thirds of mortgage borrowers in a negative equity position. In Arizona (51 percent) and Florida (49 percent), half of all mortgage borrowers were in a negative equity position. Michigan (48 percent) and California (42 percent) round out the top five states.

Ohio is #6 on that list with 39% underwater. Still, that's staggering. Two-thirds of Nevada's mortgages are underwater right now, and half in Arizona and Florida. These numbers will only get worse: 33 states and DC right now have at least 20% of all mortgages underwater. That's going to take a very, very long time to fix. That negative equity equals over $3 trillion worth of residential real estate in danger of default right now.

Glub, glub, glub. No equity, no using your home like an ATM for spending money. This recovery, if there is going to be one anytime soon, will not be consumer driven.