Report: 17.4% of Manchester-Nashua mortgages in negative equity
A jump from the fourth quarter of 2013
While CoreLogic, the property information and analytics firm, reports that, nationally, more than 300,000 homes returned to positive equity in the first quarter of the year, the picture is different in the Manchester-Nashua area.
According to CoreLogic, in Manchester-Nashua, 17.4 percent, or 13,258, of all residential properties with a mortgage were in negative equity in the first quarter of 2014, compared to 16.8 percent, or 12,771 properties, in the fourth quarter of 2013.
An additional 4.6 percent, or 3,541 residential properties, were in near negative equity for first quarter 2014 compared to 4.6 percent, or 3,486, in fourth quarter 2013, according to CoreLogic.
The CoreLogic analysis finds that approximately 6.3 million homes, or 12.7 percent of all U.S. residential properties with a mortgage, were still in negative equity as of the first quarter, compared to 6.6 million homes, or 13.4 percent for the fourth quarter of 2013.
In the first quarter of 2013, the total was 9.8 million homes, or 20.2 percent, according to CoreLogic.
Negative equity, often referred to as "underwater" or "upside down," means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.
According to CoreLogic, of the 43 million residential properties with equity, approximately 10 million have less than 20-percent equity, or are "under-equitied.”
"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."Edit ModuleShow Tags