Fewer homeowners underwater in the third quarter
By Alejandro Lazo
Los Angeles Times
Posted: 12/13/2010 02:22:09 PM PST
Updated: 12/13/2010 08:37:55 PM PST
LOS ANGELES -- The number of homeowners in the U.S. who owe more on their properties than what those homes are worth has declined steadily for most of 2010, according to statistics released Monday.
But the drop in properties with negative equity has more to do with troubled borrowers losing their homes to foreclosure than an increase in prices.
About 10.8 million, or 22.5 percent, of residential properties with mortgages were in negative equity positions at the end of the third quarter, according to Santa Ana research firm CoreLogic. That is down from 11 million, or 23 percent, in the second quarter.
The number of underwater borrowers has declined by more than 500,000 during the first nine months of 2010, according to CoreLogic.