Home

Cash-outs Affecting Negative Equity Trends

A
second company has now reported a recent increase in the number of underwater residential
properties in the U.S.  Last month
Corelogic said that approximately 172,000
homes slipped from positive to negative equity in the fourth quarter of 2014, a
change the company called “seasonal.” 
Today RealtyTrac reported an increase in the first quarter of 2015 of
0.4 percent in the number of properties with negative equity, the first
increase in nearly three years.   Both
reports noted year-over-year declines in underwater properties for the
respective quarters.

In its U.S. Home Equity & Underwater Report for the first quarter
RealtyTrac estimated a total of 7,341,922 properties were seriously underwater,
i.e. the combined loan amount secured by the property is at least 25 percent
higher than the property’s estimated market value – representing 13.2 percent
of all properties with a mortgage.  The
increase, while slight, was the first uptick since the second quarter of
2012.  The number of underwater homes was
down 4 percentage points from the first quarter of 2014.

 

…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Comments are closed.