By the end of the third quarter, nearly 6.1 million homeowners remained seriously underwater. That equates to about 10.8 percent of all homeowners with a mortgage, according to ATTOM Data Solutions’ third quarter 2016 Home Equity and Underwater Report. “Underwater” is a term to describe homeowners who owe at least 25 percent or more on their mortgage than their home’s current market value.
The number of seriously underwater homeowners is decreasing. The peak was reached in the second quarter of 2012 with 12.8 million seriously underwater homeowners, or 28.6 percent of all homeowners with a mortgage.