Report: Nearly 7 percent of Wichita area homes underwater

WICHITA - Nearly 7 percent, or 6,088, residences, in the Wichita area were underwater financially in the third quarter, meaning the property is worth less than the mortgage loan, according to housing data collector First American CoreLogic.

Statewide, the number of properties underwater is 10.4 percent, or 29,829, according to the firm.

Nationally, nearly 23 percent of all homes, or 10.7 million, are underwater.

A home with negative equity doesn't necessarily mean the owner will default, but it raises chances considerably, according to First American.

Nationally, the bulk of those with negative equity:

* Financed their properties in 2005 and 2006.

* Tend to be located in Nevada, California, Florida, Arizona and Michigan.

* Used adjustable rate mortgages.

* Bought less expensive properties.