Magazine article Mortgage Banking

Number of Underwater Mortgages Still Rising in Q4

Magazine article Mortgage Banking

Number of Underwater Mortgages Still Rising in Q4

Article excerpt

The share of all residential properties with mortgages underwater hit 24 percent in last year's fourth quarter, according to First American CoreLogic. That amounts to more than 11.3 million loans with negative equity. That was worse than the third-quarter showing of 23 percent or 10.7 million loans.

The share of loans nationally with negative equity or near negative equity (less than 5 percent equity) at the end of last year reached nearly 29 percent of all homes with mortgages outstanding.

In a release announcing the fourth-quarter findings, First American CoreLogic noted that negative equity continues to be concentrated in five states: Nevada, Arizona, Florida, Michigan and California. The percentage of loans with negative equity in those five states was as follows: Nevada (70 percent); Arizona (51 percent); Florida (48 percent); Michigan (39 percent); and California (35 percent).

The average negative-equity share among the five states with the highest share of underwater mortgages was 42 percent. That compares with 15 percent for the remaining 45 states in the country. In term of numbers of loans with negative equity, California led in that category with 2. …

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