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Negative Home Equity Now at $751 Billion
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You're Now Reading:
Negative Home Equity Now at $751 Billion
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
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Receive Multiple Offers. Save Money.
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Negative Home Equity Now at $751 Billion
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March 10, 2011 (Chris Moore)
mortgage-underwater-image
The total negative equity of homeowners who have mortgages on their homes now stands at a whopping $751 billion according to CoreLogic’s latest release of its Negative Equity Report. The report predicts that housing prices are expected to fall another 5 to 10 percent adding as much $75 billion to the amount of negative equity already faced by American borrowers holding millions captive in their homes, unable to move or sell their properties.

The report discloses that 11.1 million residential properties, or 23.1 percent of all U.S. homes, were in negative equity at Dec. 31, up from 10.8 million, or 22.5 percent, the prior quarter. The total negative equity held by the nation’s homeowners rose $7 billion for the fourth quarter from $744 billion at the end of the third quarter in 2010, but down from $800 billion a year earlier. The number of upside down mortgages declined through the first three quarters of 2010, as more properties were foreclosed upon.

“Negative equity holds millions of borrower’s captive in their homes, unable to move or sell their properties. Until the high level of negative equity begins to recede, the housing and mortgage finance markets will remain very sluggish,” said Mark Fleming, chief economist with CoreLogic.

Another 2.4 million borrowers had less than five percent home equity, putting the amount of negative equity and near-negative equity homeowners at 27.9 percent of all residential properties with a mortgage.

Nevada reportedly had the highest negative equity percentage with 65 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (47 percent), Michigan (36 percent) and California (32 percent). Nevada also had the highest average loan-to-value ratio at 118 percent. Conversely, New York homeowners have an average LTV ratio of 50 percent.

Oklahoma had the smallest percentage of underwater homeowners in the October-December quarter, at 5.8 percent. Only nine states recorded percentages less than 10 percent.

CoreLogic also weighed in on the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010’s “qualified residential mortgage” (QRM) requirement by saying the possible 20% down payment that may be required under the forthcoming definition of a QRM should make loans cheaper to originate, however, the amount of current negative equity will impact the ability of current homeowners to provide sufficient down payments.

“Clearly, higher down payments are necessary to reduce credit risk for lenders and securitizers,” the company said. “But given the majority of homebuyers are repeat buyers who use current equity as the bulk of their equity, states that have a lower proportion of borrowers with 80% LTV or less will be adversely affected because repeat buyers will not have sufficient down payments to buy new homes with QRMs.”

Tags: CoreLogic, Negative Equity Report, underwater mortgages, housing prices, housing market, mortgage market, home equity Dodd-Frank, QRM

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Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
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Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
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March 10, 2011 (Chris Moore)
mortgage-underwater-image
The total negative equity of homeowners who have mortgages on their homes now stands at a whopping $751 billion according to CoreLogic’s latest release of its Negative Equity Report. The report predicts that housing prices are expected to fall another 5 to 10 percent adding as much $75 billion to the amount of negative equity already faced by American borrowers holding millions captive in their homes, unable to move or sell their properties.

The report discloses that 11.1 million residential properties, or 23.1 percent of all U.S. homes, were in negative equity at Dec. 31, up from 10.8 million, or 22.5 percent, the prior quarter. The total negative equity held by the nation’s homeowners rose $7 billion for the fourth quarter from $744 billion at the end of the third quarter in 2010, but down from $800 billion a year earlier. The number of upside down mortgages declined through the first three quarters of 2010, as more properties were foreclosed upon.

“Negative equity holds millions of borrower’s captive in their homes, unable to move or sell their properties. Until the high level of negative equity begins to recede, the housing and mortgage finance markets will remain very sluggish,” said Mark Fleming, chief economist with CoreLogic.

Another 2.4 million borrowers had less than five percent home equity, putting the amount of negative equity and near-negative equity homeowners at 27.9 percent of all residential properties with a mortgage.

Nevada reportedly had the highest negative equity percentage with 65 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (47 percent), Michigan (36 percent) and California (32 percent). Nevada also had the highest average loan-to-value ratio at 118 percent. Conversely, New York homeowners have an average LTV ratio of 50 percent.

Oklahoma had the smallest percentage of underwater homeowners in the October-December quarter, at 5.8 percent. Only nine states recorded percentages less than 10 percent.

CoreLogic also weighed in on the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010’s “qualified residential mortgage” (QRM) requirement by saying the possible 20% down payment that may be required under the forthcoming definition of a QRM should make loans cheaper to originate, however, the amount of current negative equity will impact the ability of current homeowners to provide sufficient down payments.

“Clearly, higher down payments are necessary to reduce credit risk for lenders and securitizers,” the company said. “But given the majority of homebuyers are repeat buyers who use current equity as the bulk of their equity, states that have a lower proportion of borrowers with 80% LTV or less will be adversely affected because repeat buyers will not have sufficient down payments to buy new homes with QRMs.”

Tags: CoreLogic, Negative Equity Report, underwater mortgages, housing prices, housing market, mortgage market, home equity Dodd-Frank, QRM

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
LOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at LoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
LOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.

March 10, 2011 (Chris Moore)
mortgage-underwater-image
The total negative equity of homeowners who have mortgages on their homes now stands at a whopping $751 billion according to CoreLogic’s latest release of its Negative Equity Report. The report predicts that housing prices are expected to fall another 5 to 10 percent adding as much $75 billion to the amount of negative equity already faced by American borrowers holding millions captive in their homes, unable to move or sell their properties.

The report discloses that 11.1 million residential properties, or 23.1 percent of all U.S. homes, were in negative equity at Dec. 31, up from 10.8 million, or 22.5 percent, the prior quarter. The total negative equity held by the nation’s homeowners rose $7 billion for the fourth quarter from $744 billion at the end of the third quarter in 2010, but down from $800 billion a year earlier. The number of upside down mortgages declined through the first three quarters of 2010, as more properties were foreclosed upon.

“Negative equity holds millions of borrower’s captive in their homes, unable to move or sell their properties. Until the high level of negative equity begins to recede, the housing and mortgage finance markets will remain very sluggish,” said Mark Fleming, chief economist with CoreLogic.

Another 2.4 million borrowers had less than five percent home equity, putting the amount of negative equity and near-negative equity homeowners at 27.9 percent of all residential properties with a mortgage.

Nevada reportedly had the highest negative equity percentage with 65 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (47 percent), Michigan (36 percent) and California (32 percent). Nevada also had the highest average loan-to-value ratio at 118 percent. Conversely, New York homeowners have an average LTV ratio of 50 percent.

Oklahoma had the smallest percentage of underwater homeowners in the October-December quarter, at 5.8 percent. Only nine states recorded percentages less than 10 percent.

CoreLogic also weighed in on the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010’s “qualified residential mortgage” (QRM) requirement by saying the possible 20% down payment that may be required under the forthcoming definition of a QRM should make loans cheaper to originate, however, the amount of current negative equity will impact the ability of current homeowners to provide sufficient down payments.

“Clearly, higher down payments are necessary to reduce credit risk for lenders and securitizers,” the company said. “But given the majority of homebuyers are repeat buyers who use current equity as the bulk of their equity, states that have a lower proportion of borrowers with 80% LTV or less will be adversely affected because repeat buyers will not have sufficient down payments to buy new homes with QRMs.”

Tags: CoreLogic, Negative Equity Report, underwater mortgages, housing prices, housing market, mortgage market, home equity Dodd-Frank, QRM

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
LOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.