Fewer homeowners underwater in second quarter

CoreLogic released second-quarter-negative-equity data showing that 10.9 million, or 22.5 percent, of all residential properties with a mortgage had negative home equity at the end of second quarter 2011. However, that’s down slightly from 22.7 percent in the first quarter.
An additional 2.4 million borrowers had less than five percent equity in the second quarter. The new report also shows that nearly three-quarters of homeowners in negative equity situations are also paying higher, above-market interest on their mortgages.
Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.
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