Nearly 10.9 million, or 22.5 percent, of all residential mortgages had negative equity at the end of the second quarter of the year, according to a report released Tuesday by the analytics firm CoreLogic. The figure is actually a slight improvement from the 22.7 percent of all mortgages with negative equity in the first quarter of 2011. CoreLogic says nearly three-quarters of homeowners in negative equity situations are also paying higher, above-market interest on their mortgages. Nevada held the top position in terms of negative equity with 60 percent of all of its mortgaged properties underwater, followed by Arizona (49 percent), Florida (45 percent), Michigan (36 percent), and California (30 percent). http://www.corelogic.com/
Showing posts with label Negative Equity. Show all posts
Showing posts with label Negative Equity. Show all posts
Wednesday, September 14, 2011
10.9 million Houses Underwater
Nearly 10.9 million, or 22.5 percent, of all residential mortgages had negative equity at the end of the second quarter of the year, according to a report released Tuesday by the analytics firm CoreLogic. The figure is actually a slight improvement from the 22.7 percent of all mortgages with negative equity in the first quarter of 2011. CoreLogic says nearly three-quarters of homeowners in negative equity situations are also paying higher, above-market interest on their mortgages. Nevada held the top position in terms of negative equity with 60 percent of all of its mortgaged properties underwater, followed by Arizona (49 percent), Florida (45 percent), Michigan (36 percent), and California (30 percent). http://www.corelogic.com/
Wednesday, March 9, 2011
Dodd-Frank Making Matters Worse
Fourth quarter data from CoreLogic reveals negative and near-negative equity mortgages account for 27.9 percent of all residential properties with a mortgage nationwide, and the company says recent legislation could make a gloomy situation even darker for the hardest-hit states. Negative equity increased in the last quarter of 2010, rising from 10.8 million properties underwater in the third quarter to 11.1 million in the fourth. Today, about 23 percent of all residential properties with a mortgage are already underwater.
http://www.dsnews.com/articles/with-negative-equity-still-rising-dodd-frank-could-make-things-even-worse-2011-03-08
http://www.dsnews.com/articles/with-negative-equity-still-rising-dodd-frank-could-make-things-even-worse-2011-03-08
Tuesday, May 11, 2010
Negative Equity
The number of mortgaged residential properties sinking under the weight of negative equity declined slightly during the first three months of this year, CoreLogic reported Monday.
According to the company’s market data, just over 11.2 million, or 24 percent, of all homes in the United States with a mortgage were worth less than the outstanding loan balance at the end of the first quarter of 2010. That figure is down from 11.3 million at the end of last year.
An additional 2.3 million borrowers had less than five percent equity in their home, CoreLogic found. Together, negative equity and near-negative equity mortgages accounted for over 28 percent of all residential properties with a mortgage nationwide.
“The two most important triggers of default, negative equity and unemployment, have stabilized over the last six months,” said Mark Fleming, chief economist with CoreLogic. “As house prices grow again and borrowers pay down their mortgage debt negative equity levels will begin to diminish.”
Fleming says the typical underwater borrower is likely to regain their lost equity over the next five to seven years.
Based on CoreLogic’s market analysis, negative equity continues to be concentrated in five states. Nevada sits at the top of that list, with 70 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (48 percent), Michigan (39 percent), and California (34 percent).
The share of borrowers nationwide whose mortgage debt exceeds the property value by 25 percent or more fell slightly in Q1 to 10.4 percent, or 4.9 million borrowers. That’s down from 10.6 percent, or 5 million borrowers, during the previous three-month period. The aggregate dollar value of negative equity for these deeply underwater borrowers was $656 billion dollars, according to CoreLogic’s data.
The company found that 38 percent of borrowers with second liens or home equity lines of credit were underwater in Q1, compared to 19 percent of borrowers without a junior lien. CoreLogic also noted the foreclosure rate for borrowers with secondary liens was 4 percent, compared to 2 percent for those withou
According to the company’s market data, just over 11.2 million, or 24 percent, of all homes in the United States with a mortgage were worth less than the outstanding loan balance at the end of the first quarter of 2010. That figure is down from 11.3 million at the end of last year.
An additional 2.3 million borrowers had less than five percent equity in their home, CoreLogic found. Together, negative equity and near-negative equity mortgages accounted for over 28 percent of all residential properties with a mortgage nationwide.
“The two most important triggers of default, negative equity and unemployment, have stabilized over the last six months,” said Mark Fleming, chief economist with CoreLogic. “As house prices grow again and borrowers pay down their mortgage debt negative equity levels will begin to diminish.”
Fleming says the typical underwater borrower is likely to regain their lost equity over the next five to seven years.
Based on CoreLogic’s market analysis, negative equity continues to be concentrated in five states. Nevada sits at the top of that list, with 70 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (48 percent), Michigan (39 percent), and California (34 percent).
The share of borrowers nationwide whose mortgage debt exceeds the property value by 25 percent or more fell slightly in Q1 to 10.4 percent, or 4.9 million borrowers. That’s down from 10.6 percent, or 5 million borrowers, during the previous three-month period. The aggregate dollar value of negative equity for these deeply underwater borrowers was $656 billion dollars, according to CoreLogic’s data.
The company found that 38 percent of borrowers with second liens or home equity lines of credit were underwater in Q1, compared to 19 percent of borrowers without a junior lien. CoreLogic also noted the foreclosure rate for borrowers with secondary liens was 4 percent, compared to 2 percent for those withou
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