Fewer Hartford homeowners owed more on their mortgages than their homes were worth in the third quarter, according to CoreLogic.
Negative equity, often referred to as being “underwater” or “upside down,” is the term applied to borrowers who owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in a home’s value, an increase in mortgage debt or both.
In the Hartford region, 7 percent of all residential properties with a mortgage were in negative equity in the third quarter, compared with 7.9 percent a year ago, according to the property analytics firm.
Nationally, negative equity decreased 22 percent for all mortgaged properties in the third quarter, compared to the year-ago period, CoreLogic said.
“While homeowner equity is rising nationally, there are wide disparities by geography,” said Frank Martell, president and CEO of CoreLogic. “Hot markets like San Francisco, Seattle and Denver boast very high levels of increased home equity. However, some markets are lagging behind due to weaker economies or lingering effects from the great recession.”
Negative equity peaked at 26 percent of mortgaged residential properties in the fourth quarter of 2009 based on CoreLogic equity data analysis.
