Rising home prices helped 100,000 homeowners in the U.S. crawl out of a negative equity position during the 3rd quarter of 2012, according to a report just released by CoreLogic®. During the first nine months of 2012, there were a total of 1.4 million homeowners that found themselves moving from a negative equity position on their homes to a positive equity position. In spite of this vast improvement, twenty two percent of homeowners in the U.S. with a mortgage owe more on their homes than they are currently worth.
Highlights of the report for the 3rd quarter of 2012:
- Nevada had the highest percentage of mortgaged properties in negative equity at 56.9 percent, followed by Florida (42.1 percent), Arizona (38.6 percent), Georgia (35.6 percent) and Michigan (32 percent). These top five states combined account for 34 percent of the total amount of negative equity in the U.S.
- Of the total $658 billion in aggregate negative equity, first liens without home equity loans accounted for $323 billion aggregate negative equity, while first liens with home equity loans accounted for $334 billion.
- 6.6 million upside-down borrowers hold first liens without home equity loans. The average mortgage balance for this group of borrowers is $214,000. The average underwater amount is $49,000.
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