The Herald of Everett, Washington
Customer service  |  Subscribe   |   Log in or sign up   |   Advertising information   |   Contact us
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Maureen Bozlinski
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
mbozlinksi@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

Fewer homeowners stuck with 'underwater' homes

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Alejandro Lazo
Los Angeles Times
Published:
One of the most pernicious effects of the housing bust was the huge number of borrowers stuck in homes worth far less than those properties could be sold for.
Negative equity has been a major drag on mobility and hence the American economy. Being stuck "underwater" means you can't sell your house or often even move out if you get a job someplace else.
Now that problem is easing, ever so slightly, with the recent rebound in home prices. About 100,000 borrowers popped into a positive equity position during the third quarter of 2012, mortgage tracker CoreLogic reported Thursday.
"Through the third quarter, the number of underwater borrowers declined significantly," CoreLogic chief economist Mark Fleming said in a news release. "The substantive gain in house prices made in 2012, partly due to tight inventory caused by negative equity's lock-out effect, has paradoxically alleviated some of the pain."
As many as 1.8 million borrowers could have equity in their home in the next year if prices continue to rise, the firm reported.
CoreLogic said that about 10.7 million homes -- or about 22 percent of all residential properties with a mortgage -- were in negative equity at the end of the third quarter. Negative-equity mortgages and those in a near-negative-equity position accounted for 26.8 percent of all homes with a mortgage.
Negative equity fell to $658 billion at the end of the third quarter, a decrease of $31 billion from the prior quarter. Nevada had the highest percentage of underwater homes at 56.9 percent. After the Silver State came Florida at 42.1 percent and then Arizona at 38.6 percent.
---
2013 Los Angeles Times
Visit the Los Angeles Times at www.latimes.com
Distributed by MCT Information Services
----------
Topics: t000132490,t000023135,t000002537,t000040342,t000023136,t000023122
Story tags » Real Estate

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup