A new report says homeowners in Michigan and five other states account for 60 percent of all homeowners who owe more on their mortgages than their houses are worth.
The other states are Nevada, California, Arizona, Florida and Georgia.
Nationwide, a fifth of homeowners with a mortgage owe more to their lender than their properties are worth.
But when the six states are excluded, the rate drops to 10 percent.
Nationally, home prices are already down about 20 percent from their peak in mid-2006.
New York University economist Nouriel Roubini says by the time the housing market hits bottom, prices may be down 40 percent from the top.