Tags: CoreLogic | Mortgage | Holders | Underwater

CoreLogic: Third of All Mortgage Holders Are ‘Underwater’

Friday, 02 Mar 2012 08:04 AM

About one-third of all homeowners with a mortgage owe more on their homes than they're worth or are close to it, according to a report from CoreLogic, a data analysis company.

CoreLogic research finds that 1.1 million, or 22.8 percent, of all residential properties with a mortgage were in negative equity at the end of the fourth quarter of 2011, up from, 22.1 percent in the previous quarter, CNBC reports.

Another 2.5 million borrowers that have less than five percent equity, referred to as near-negative equity, in the fourth quarter.

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Add both groups together and one-third of all homeowners with a mortgage cannot sell their homes without coming up with money to pay off the difference in the mortgage as well as closing costs.

Blame falling home prices, especially in states that saw the boom like Florida and Nevada.

"The top five states combined have an average negative equity share of 44.3 percent, while the remaining states have a combined average negative equity share of 15.3 percent," according to CoreLogic, CNBC reports.

Home prices, meanwhile, continue to fall.

The S&P/Case-Shiller quarterly national home price index showed prices fell 4.0 percent in the fourth quarter compared to the same period a year earlier, Standard & Poor's says in a statement

Prices are now down to 2002 levels and are 33.8 percent below the peak of the housing bubble, in the second quarter of 2006.

"After a prior three years of accelerated decline, the past two years has been a story of a housing market that is bottoming out but has not yet stabilized," S&P's David Blitzer says in the statement.

"While we thought we saw some signs of stabilization in the middle of 2011, it appears that neither the economy nor consumer confidence was strong enough to move the market in a positive direction as the year ended."

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here

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2012-04-02
Friday, 02 Mar 2012 08:04 AM
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