NEW YORK (CNNMoney.com) – According to a report by First American CoreLogic, at least 7.5 million American homeowners are "underwater borrowers," meaning they owe more on their mortgages than their homes are currently worth.

This is called negative equity, and the report shows an additional 2.1 million people are on the brink of falling into it. Their homes are worth less than 5 percent more than the mortgages they’re paying on them.

The report’s 7.5 million estimate is a conservative number. Some organizations, including Moody’s Economy.com, estimate that as many as 12 million borrowers may be underwater.

In Texas, 16.6 percent of homeowners have negative equity, caused by a recent influx of people who bought homes and did not have enough time to build up equity before prices began to fall.

Nevada is home to the highest number of underwater borrowers, with 48 percent of homeowners having negative equity. Michigan follows with 39 percent.

New York is faring best at 4.4 percent.