Ne­vada, Florida, Ari­zona claim the most ‘un­der­wa­ter mort­gages’ in the U.S.

Financial Mirror (Cyprus) - - FRONT PAGE - By Paul Au­sick

Of nearly 46.3 mln mort­gaged res­i­den­tial prop­er­ties in the United States at the end of the third quar­ter of 2015, ap­prox­i­mately 4.1 mln (10.4%) had a mort­gage amount greater than the value of the property. The per­cent­age of un­der­wa­ter or neg­a­tive eq­uity prop­er­ties at the end of the third quar­ter was lower than the to­tal at the end of the sec­ond quar­ter (5.4 mln and 10.9%).

Some 17.6% (or 8.9 mln) of all mort­gaged prop­er­ties have pos­i­tive eq­uity of less than 20%, and 2.2% had less than 5% pos­i­tive eq­uity at the end of the third quar­ter. Th­ese lev­els are slightly lower than at the end of the sec­ond quar­ter of 2015, when 17.8% of all prop­er­ties had pos­i­tive eq­uity be­low 20% and 2.3% had less than 5% pos­i­tive eq­uity.





neg­a­tive eq­uity fell by $8.1 bln in the third quar­ter to a na­tion­wide to­tal of $301 bln. At the end of the sec­ond quar­ter, the ag­gre­gate value of un­der­wa­ter property to­taled $309.1 bln. The data were re­leased by re­search firm CoreLogic.

CoreLogic’s chief econ­o­mist noted that “home price growth con­tin­ued to lift bor­rower eq­uity po­si­tions and in­crease the num­ber of bor­row­ers with suf­fi­cient eq­uity to par­tic­i­pate in the mort­gage mar­ket. In Q3 2015 there were 37.5 mln bor­row­ers with a least 20% eq­uity, up 7% from 35 mln in Q3 2014. In the last three years, bor­row­ers with at least 20% eq­uity have in­creased by 11 mln, a sub­stan­tial uptick that is driv­ing rapid growth in home eq­uity orig­i­na­tions.”

The five states with the high­est per­cent­age of homes with neg­a­tive eq­uity were Ne­vada (19.0%), Florida (17.8%), Ari­zona (14.6%), Rhode Is­land (12.3%) and Mary­land (12.1%). Th­ese five ac­counted for 29.3% of all U.S. un­der­wa­ter mort­gages quar­ter of 2015.

The five states with the high­est per­cent­ages of homes with pos­i­tive eq­uity were Texas (97.9%), Alaska (97.7%), Hawaii (97.6%), Colorado (97.2%) and Mon­tana (97.1%).

The five met­ro­pol­i­tan ar­eas with the high­est per­cent­age of prop­er­ties with neg­a­tive eq­uity were Tampa-St. Peters­burg-Clear­wa­ter, Fla. (19.6%), Phoenix-Mesa-Scottsdale, Ariz. (14.2%), Chicago-Naperville-Ar­ling­ton Heights, Ill. (13.8%), River­side-San Bernardi­noOn­tario, Calif. (11.3%) and Wash­ing­ton, DC-Ar­ling­ton-Alexan­dria, Va. (10.8%).

The five metro ar­eas with the high­est per­cent­age in pos­i­tive eq­uity were Hous­ton-The Wood­lands-Sugar Land, Texas (98.2%), Port­landVan­cou­ver-Hills­boro, Ore. (98.1%), Den­ver-Aurora-Lake­wood, Colo. (98.0%), Dal­las-Plano-Irv­ing, Texas (97.9%) and Seat­tle-Belle­vue-Everett, Wash. (97.7%). (Source: 24/7 Wall




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