Follow Me on Twitter
«  
  »

Nearly one-third of all mortgages underwater

By Dennis Norman, on August 14th, 2009
Dennis Norman
Dennis Norman

By: Dennis Norman

According to a report issued by First American CoreLogic more than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, are in a negative equity position.

In addition, according to the CoreLogic report, there are an additional 2.5 million mortgaged properties that are approaching negative equity. Negative equity and near negative equity mortgages combined account for nearly 38 percent of all residential properties with a mortgage.
firstamerican corelogic
Much like foreclosures, the distribution of negative equity mortgages is heavily skewed to a small number of states as three states account for roughly half of all mortgage borrowers in a negative equity position. Nevada (66 percent) had the highest percentage with nearly two-thirds of mortgage borrowers in a negative equity position. Next highest is Arizona (51 percent) and Florida (49 percent) followed by Michigan (48 percent) and California (42 percent).

“Negative equity continues to be the dominant driver of the mortgage market because it leads to foreclosures in the event a borrower experiences some kind of economic shock such as a job loss, illness or other adverse situation. Given that negative equity did not increase this quarter and home prices declines are moderating or flattening, we may be at the peak of the negative equity cycle. However, until negative equity recedes and unemployment declines, mortgage risk will continue to be very elevated,” said Mark Fleming, chief economist for First American CoreLogic.

Negative Equity by State June 2009 First American Core Logic

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

August 14th, 2009 | Tags: , , , , , , , | Category: Financing, Real Estate Market, Residential

Leave a Reply

 

 

 

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Spam protection by WP Captcha-Free