According to Channel 8 News out of Las Vegas, nearly half of Nevada's mortgaged homes remain deeply underwater, which is why the state ranks highest in the nation when it comes to upside down homeowners. Channel 8 describes the dire situation:

(RealtyTrac), a real estate analytics company from Irvine, Calif., reported that 46% of Nevada homes with mortgages have outstanding loans that are at least 25% higher than the estimated market value of the residences. That's double the 23% underwater rate that RealtyTrac found nationally.