CoreLogic Data Finds Decrease in Negative Equity

It was reported today by CoreLogic, a provider of analytics and business services, that the national negative equity decreased in the first quarter of 2011.

Negative equity, also referred to as “underwater”, occurs when mortgages on borrowers’ houses are greater than the actual worth of the house. Near negative equity refers to when borrowers have less than 5 percent equity.

The CoreLogic data showed 10.9 million, or 22.7 percent, of residential properties with mortgages were in negative equity or near negative equity in the first quarter. This is a slight decrease from 27.9 percent at the end of the fourth quarter.

The states with the highest negative equity, including Nevada, Arizona and Florida, showed significant decline in the first quarter, which is the main cause for the national decline, while the majority of remaining states did not change or slightly increased.

However, while most states showed no decrease in their negative equity, a May Rasmussen Report found homeowners remain confident in their equity.

The survey conducted in mid-May of 680 homeowners reported 51 percent of believe their home is worth more than their mortgage, and 93 percent said they have not missed or been late on a mortgage payment in the last six months.  

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