About 23.1 percent of all mortgaged homes (11.1 million households) were underwater in Q4, according CoreLogic's report released on Tuesday, showing an increase from 22.5 percent (10.8 million) in Q3.

Furthermore, an additional 2.4 million home owners are nearing the point to become underwater on their mortgages.

Underwater mortgages typically rise when home prices fall, but previous three quarters have seen them fall mostly due to more homes falling into foreclosure. Home prices have been the lowest in December since the housing bust in 11 of 20 major U.S. metro areas, according to the Associated Press. Generally, in a healthy housing market, about 5 percent of home owners are underwater.

Click Start to view the top 10 cities with the most underwater mortgages in the U.S.

4 West Palm Beach, Florida
Corruption and struggling home prices put West Palm Beach high on the list with its South Florida neighbor. floridahome.palmbeachpost.com
8. Jacksonville, Fla.
47% of mortgages underwaterThe number of mortgages with negative equity rose from 145,316 to 155,487 in just three months. forum.skyscraperpage.com