By Jann Swanson | Mortgage News Daily
The once-epidemic level of underwater properties retreated further into history in 2016 as another 1 million homeowners regained equity in their homes. CoreLogic said on Thursday that 48 million homes, about 93.8 percent of those with a mortgage, now have positive equity. Negative equity peaked at 26 percent of mortgaged residential properties in Q4 2009 based on the company’s equity data analysis, which began in Q3 2009.
Negative equity, often referred to as being “underwater” or “upside down,” applies to borrowers who owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in home value, an increase in mortgage debt or both.