Fresno Bee Newsroom Blog

Real Estate: Fewer homeowners underwater on their mortgage

Fewer Fresno homeowners owe more on their mortgages than their homes are worth, according to a third-quarter negative-equity report released Thursday.

In Fresno, 65,004 borrowers, representing 43.1% of all mortgage loans, owed more than the value of their home, according to CoreLogic, a real estate tracking company based in Santa Ana.

That’s less than the second quarter when 66,641 properties, or 44.2% of all mortgages, had negative equity.

Nationwide,  10.7 million or 22% of all mortgages had negative equity at the end of the third quarter, down from 10.8 million or 22.3% during the second quarter.

About 100,000 borrowers reached a state of positive equity, the report said.

“There has been steady progress relative to reducing negative equity and its effects in 2012, but with nearly one quarter of borrowers still underwater, we have a long way to go,” said Anand Nallathambi, CoreLogic’s president and chief executive officer. “As we look ahead into 2013, we expect to continue to see more borrowers escape the negative equity trap, which will be a strong positive for the housing market specifically and the broader economy generally.”

Responses

Angela says:

How are borrowers escaping the negative equity trap? Refinancing? Foreclosing? Walking Away? It’s time for homeowners to try and take the “bull by the horns” with the banks and let them “eat” some of the loss. I am afraid this housing market is going to last quite a long time. Scary.

http://www.yourhomesaver.com

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