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More Americans are drowning in underwater mortgages — and 1 state just saw a staggering surge

More American homeowners now owe substantially more on their mortgages than what their properties are worth, as a key measure of housing-market distress moves in the wrong direction.

The share of US homeowners who are “seriously underwater” on their mortgages climbed to 3.2% in the second quarter, up from 2.7% a year earlier, according to a new state-by-state analysis from real estate data firm ATTOM.

That means the combined balance of loans secured against the property is at least 25% greater than what the home itself is estimated to be worth

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