312,000 Properties Regain Equity in Q1 2014

foreclosureThis is good news for both buyers and sellers. For homeowners it means that their homes are finally in the black and therefore that can afford to sell and for buyers it means that there should be more houses on the market.  For a more detailed look at this subject – please read the article below.

The FHA Condos Approval Company, Inc.

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CoreLogic released an analysis of residential properties in the first quarter of 2014, focusing specifically on homes with negative equity. The company found that more than 300,000 homes returned to positive equity in the quarter, bringing the total number of mortgaged residential properties with equity to more than 43 million.

Negative equity, more commonly known as a home being “underwater,” means borrowers owe more on their mortgage than their homes are worth. The company cites declines in value, an increase in mortgage debt, or some combination of the two as factors leading to a home having negative equity.

The company’s analysis found that roughly 6.3 million properties, or 12.7 percent of all residential properties with a mortgage, had negative equity as of Q1 2014. The first quarter of 2014 saw a decline from the fourth quarter of 2013, when 6.6 million homes had negative equity, or 13.4 percent.

Year-over-year, negative equity properties have declined 20.2 percent from 9.8 million in 2013 to 6.3 million in Q1 2014.

Underwater homes have a national aggregate value of negative equity of $383.7 billion at the end of the quarter, according to CoreLogic. Negative equity is down $16.9 billion from roughly $400 billion in the fourth quarter of 2013.

“Despite the massive improvement in prices and reduction in negative equity over the last few years, many borrowers still lack sufficient equity to move and purchase a home,” said Sam Khater, deputy chief economist for CoreLogic. “One in five borrowers have less than 10 percent equity in their property, which is not enough to cover the down payment and additional costs associated with a conventional mortgage.”

To read the complete article – please use the link below.

Properties Regain Equity

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