According to a recent study by First American CoreLogic, 1 in 11 mortgaged properties in Texas had negative equity.  Commonly noted as "under water" or "upside down" it simply means that 11% of the properties are worth less than what is owed on the mortgage.  For those who like numbers, there are 3,168,016 mortgaged properties in Texas of which 348,208 were upside down as of September 30, 2009.  Another 6% are defined as having "near negative equity" because they have between 0% and 5% equity.

In the Austin area, 9.7% are upside down with an additional 5.6% within 5% of being under water.  This is the lowest of the major Texas cities cited in the report (Dallas 13.5%/7.4%, Fort Worth 12.3%/7.9%, Houston 11.7%/5.9%, and San Antonio 9.9%/5.8%).

As a nation, 22.6% of properties with a mortgage have negative equity (note that data was not available on seven states).  Nevada leads the pack with 65%.  To see list of state data, click here.

If you find yourself in a negative equity situation, contact me so that we can discuss your options.

Thanks to my friend Victoria Luhring, a Realtor in Toledo, for bringing this report to my attention.