Nearly 850,000 Home Borrowers Escape NegativeEquity In Q1
"The impressive home price gains of 2012 and the beginning of 2013; Helped, 1.7 million borrowers regained positive equity."
Overall, 9.7 million borrowers, or 19.8 percent of all residential mortgages, were underwater in the first quaarter of 2013, down from 10.5 million, or 21.7 percent of all mortgages, in the previous quarter, acccording to the data provider's estimate.
As more homeowners are freed from negative equity, prices might also stabilize in certain markets.
While 850,000 returned to positive equity in Q1, 2.1 million residntial propeties are at risk of transitioning into negative equity if home proces were to fall since they have less than 5 percent of equity in their homes. Another 11.2 million borrowers have a less than 20 perent of equity compared to the average amount of 32.8 percent for all mortgaged propetes.
-‐-‐-‐sources DSNews.com, Housingwire.com, and Bloomberg.com-‐-‐-‐