First American CoreLogic, a real estate data company, reported that 10.7 million homes are worth less than the mortgages owed on them. This represents 23 percent of all homes mortgaged during the third quarter.
An additional 2.3 million homes are approaching negative equity.
“Negative equity continues to be pervasive and to impact almost every segment of the housing market,” said Mark Fleming, chief economist at First American CoreLogic. “It will take a significant rebound in home prices, which we are not expecting, to offset the dampening effects of negative equity in the most depressed states.”
DHW asks: Is your home “underwater?”