The number of residential properties with mortgages that were in negative equity at the end of the third quarter declined compared to the end of the second quarter, CoreLogic reports. The Q3 Negative Equity Report finds that 10.8 million, or 22.5 percent, of all mortgaged residential properties were in negative equity at the end of the third quarter, compared to 11.0 million, or 23 percent, at the end of the second quarter.
The number of borrowers who are underwater on their mortgages has declined by more than 500,000 to date in 2010, but an additional 2.4 million borrowers were near negative equity (within 5 percent) in the third quarter. Negative equity and near-negative equity mortgages accounted for 27.5 percent of all mortgaged residential properties at the end of the third quarter.
Negative equity was most prevalent in five states: Nevada, Arizona, Florida, Michigan and California.
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