22.8% of U.S. Homes Underwater

The number of homes with negative equity, defined as homes where the mortgage balance exceeds the market value, stands at 11.1 million, or 22.8% for the fourth quarter 2011. This figure was up from 10.7 million or 22.1% for third quarter 2011. Chief economist Mark Fleming with CoreLogic explains the increase in the negative equity is “due to the seasonal declines in home prices and the slowing foreclosure pipeline which is depressing home prices”. The current negative equity percentage is now back to the same level as the 2009 third quarter, when this negative equity reporting methodology first began.

As more governmental initiatives become implemented on behalf of homeowners, hopefully we will see a gradual decline in the number of underwater homes. Please know that if you are facing foreclosure or attempting a modification or short sale, the Law Office of R. Spencer Lauterbach can help defend you in court and assist in the modification or short sale process. If you have any questions, or would like to schedule a consultation, please call the Law Office of R. Spencer Lauterbach at (845) 639-1699. Posted 3.2.2012