CoreLogic Sees Small Improvement In Negative Equity Homeowners in 3Q2011

November 30th, 2011
in econ_news

Econintersect: CoreLogic released their 3Q2011 negative equity data showing that 10.7 million, or 22.1%, of all residential properties with a mortgage were in negative equity at the end of the third quarter of 2011.  Negative equity is where a homeowner owes more on his home than the home is worth.

This is down slightly from 22.5% in 2Q2011. Negative equity and near-negative equity mortgages (less than 5% equity) accounted for 27.1% of all residential properties with a mortgage.

“Although slightly down, negative equity remains very high and renders many borrowers vulnerable when negative economic shocks occur, such as job loss or illness. The nearly $700 billion mortgage debt overhang has touched many corners of the market, and this overhang is holding back the recovery of the housing market and broader economy,” said Mark Fleming, chief economist with CoreLogic.

Follow up:

These underwater mortgages have a high concentration in Nevada, Arizona, Florida, Michigan, Georgia and California.

CoreLogic points out that 54% of borrowers who have less than 80% loan-to-value (LTV) ratio have above-market interest rates.  "It can be more difficult for borrowers with above-average LTV ratios to qualify for refinancing."

source: CoreLogic

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved