Last week we talked about the First American CoreLogic 4th Quarter 2009 negative equity report.  Here’s a list from that report of the ten most under water states and the ten most troubled cities when it comes to negative equity.

Top 10 States with Negative Equity as a Percentage of Total Mortgages

Nevada—69.9%
Arizona—51.3%
Florida—47.8%
Michigan—38.5%
California—35.1%
Georgia—27.8%
Virginia—24.3%
Maryland—22.9%
Idaho—22.7%
Utah—21.1%
National average: 23.8%

Top 10 Cities with Negative Equity as a Percentage of Total Mortgages

Las Vegas/Paradise, NV—74.7%
Phoenix/Mesa/Glendale, AZ—57.5%
Orlando/Kissimmee/Sanford, FL—55.5%
Riverside/San Bernardino/Ontario, CA—54.9%
Ft. Lauderdale/Pompano Beach/Deerfield Beach, FL—54.2%
Miami/Miami Beach/Kendall, FL—49.8%
Tampa/St. Petersburg/Clearwater, FL—48.5%
Sacramento/Arden/Arcade/Roseville, CA—46.1%
West Palm Beach/Boca Raton/Boynton Beach, FL—45.4%
Jacksonville, FL—44.3%
Warren/Troy/Farmington Hills, MI—44.0%

Other markets at or above the national average include Cleveland/Elyria/Mentor, OH; Oakland/Fremont, CA; San Diego/Carlsbad/San Marcos, CA; Washington, DC/Arlington and Alexandria, VA; Atlanta/Sandy Springs/Marietta, GA; Chicago/Joliet/Naperville, IL; Los Angeles/Long Beach/Glendale, CA; and Denver/Aurora/Broomfield, CO.

Most of these markets have seen dropping prices since 2006 and many continue to see drops, though at a slower rate than in the past two years.  These will remain the foreclosure capitals of the country for the foreseeable future and the greatest opportunities for Short Sale Investors because of the large inventory of homes that cannot be sold without a loss.