Magazine article Mortgage Banking

Underwater Mortgages Drop to 5.1 Million in Third Quarter

Magazine article Mortgage Banking

Underwater Mortgages Drop to 5.1 Million in Third Quarter

Article excerpt

Irvine, California-based CoreLogic reported that in the third quarter, the number of homes with negative equity dropped by 3 percentage points from a year ago. That left roughly 5.1 million homes, or 10.3 percent of residential properties with a mortgage, still underwater.

The improvement amounted to a year-over-year decrease of almost 1.5 million in the total number of underwater homes. In the third quarter, borrower equity increased by roughly $800 billion nationwide from one year earlier.

The national aggregate value of negative equity totaled $338 billion at the end of the third quarter. That was down from $403.2 billion in negative equity in third quarter 2013.

Nevada had the highest percentage of residential properties still with negative equity at 25.4 percent, according to CoreLogic. Florida was second with 23.8 percent of properties with negative equity, followed by Arizona (19 percent), Rhode Island (14.8 percent) and Illinois (14.1 percent). Those five states accounted for roughly one-third of the total amount of negative equity in the country. …

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