Approximately 100,000 borrowers achieved a state of positive equity during the third quarter of 2012, according to new data from Irvine, Calif.-based CoreLogic.
CoreLogic determines that more than 1.4 million borrowers moved into positive equity during the first three quarters of last year. However, 10.7 million, or 22%, of all residential properties with a mortgage were in negative equity at the end of the third quarter, while an additional 2.3 million borrowers had less than 5% equity in their home during that period.
‘There has been steady progress relative to reducing negative equity and its effects in 2012,’ says Anand Nallathambi, president and CEO of CoreLogic. ‘But, with nearly one quarter of borrowers still underwater, we have a long way to go. As we look ahead into 2013, we expect to continue to see more borrowers escape the negative equity trap and that will be a strong positive for the housing market specifically and the broader economy generally.’