More than 10% of people with mortgages owe 25% more than their home is worth.
...In Nevada, 70% of mortgages were underwater. In California, more than a third of mortgages were underwater.
..."The rise in negative equity is closely tied to increases in pre-foreclosure activity," CoreLogic said. Once a homeowner owes 25% more than the house is worth, foreclosure rates rise sharply.
Negative equity exceeded 25% in six states and topped 20% in six others.