Report: 8.3 Million U.S. Homeowners with Negative Equity

From Bloomberg: More Than 8.3 Million U.S. Mortgages Are Underwater

More than 8.3 million U.S. mortgage holders owed more on their loans in the fourth quarter than their property was worth as the recession cut home values by $2.4 trillion last year, First American CoreLogic said.

An additional 2.2 million borrowers will be underwater if home prices decline another 5 percent, First American, a Santa Ana, California-based seller of mortgage and economic data, said in a report today. Households with negative equity or near it account for a quarter of all mortgage holders.

Late last year Mark Zandi at Moody's Economy.com estimated that there were "roughly 12 million households, or 16%, owe more than their homes are worth". The difference between the estimates is probably because a large number of homeowners have little equity - and small changes in home price assumptions change the number underwater significantly. The differences in percentages is because CoreLogic is using only households with mortgages; Zandi used all households (about 31% of households have no mortgages).