As home prices increase, more borrowers are rising out of negative equity.
Recent data from CoreLogic revealed about 100,000 borrowers moved out of negative equity during the third quarter of 2012, bringing the total number of homeowners who transitioned from negative to positive territory in 2012 to 1.4 million so far.
In the third quarter, about 22 percent of residential properties with a mortgage were considered to be underwater, which translates into 10.7 million mortgages, down from 10.8 million properties in the second quarter.
“Through the third quarter, the number of underwater borrowers declined significantly,” said Mark Fleming, chief economist for CoreLogic. “The substantive gain in house prices made in 2012, partly due to tight inventory caused by negative equity’s lock-out effect, has paradoxically alleviated some of the pain.” Read more...
In the third quarter, about 22 percent of residential properties with a mortgage were considered to be underwater, which translates into 10.7 million mortgages, down from 10.8 million properties in the second quarter.
“Through the third quarter, the number of underwater borrowers declined significantly,” said Mark Fleming, chief economist for CoreLogic. “The substantive gain in house prices made in 2012, partly due to tight inventory caused by negative equity’s lock-out effect, has paradoxically alleviated some of the pain.” Read more...
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