Negative Equity Homes Remain an Issue

Negative Equity Homes Remain an Issue

Short Sale Solutions

 

Even though homes with negative equity have been on the decline since the 2013 fourth quarter, 10.8% of all homes were underwater in the 2014 fourth quarter. That is nearly 5.4 million properties nationwide.

The CEO of CoreLogic, Anand Nallathambi, believes that the negative equity properties remain a huge issue despite the decline in year-over-year percentage of underwater residential properties. “For the full year of 2014, 1.2 million borrowers regained equity – but nearly five and a half million properties remained in negative equity as of the end of the year after approximately 172,000 homes slipped into negative equity from the third quarter to the fourth quarter in 2014.”

The falling home prices may be the cause of many negative equity properties. According to CoreLogic, if the home prices rose 5%, then roughly one million homeowners would regain equity.

“We expect the situation to improve over the course of 2015,” Nallathambi stated. “We project that the CoreLogic HomePrice Index will rise 5 percent in 2015, which will lift about one million homeowners out of negative equity.”

 

 

Source: dsnews.com

 

Negative Equity Homes Remain an Issue

SHORT SALE SOLUTIONS

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