Greetings neighbors,

According to recent studies from First American CoreLogic, a real estate information firm, many Americans owe well over what their home is actually worth. The study showed that 23 percent of American homes were in negative equity at the end of September, and 2.3 million mortgage holders possessed less than 5 percent equity.

There were five states that were greatly impacted by negative equity, and they are: Nevada, Arizona, Florida, Michigan, and California.

There were a few common factors found in relation to those who experienced negative equity which included: buyers financing their property between 2005 and 2008, adjustable rate mortgages, they purchased new construction concentrated in certain states, and the purchase of less expensive properties.

On a brighter note, it looks as if the increases of new home sales has actually slowed the increase of negative equity.