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Between October and December, 2012, some 200,000 consumers who had previously been underwater on their home loans were able to get out from under their negative equity, according to the latest data released by the real estate tracking firm CoreLogic. That was down slightly from the average number added to the rolls of those with positive equity in each of the previous three quarters of the year, but brought the annual total to about 1.7 million who brought their mortgages right side up in 2012. At the end of the year, about 38.1 million people nationwide had positive equity on their mortgages.
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However, despite these improvements, 10.4 million people across the country — accounting for 21.5 percent of all homeowners — were still underwater on their mortgages at the end of last year, the report said. That was down from 12.1 million at the start of 2012, though.
“The scourge of negative equity continues to recede across the country,” said Anand Nallathambi, president and chief executive officer of CoreLogic. “There is certainly more to do but with fewer borrowers underwater, the fundamentals underpinning the housing market will continue to strengthen. The trend toward more homeowners moving back into positive equity territory should continue in 2013.”
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Experts believe home prices will continue rising at least through the end of this year, though likely not at the rates seen over the previous 12 months, because many consider those to be unsustainable overall. Nonetheless, these continued (if somewhat diminished) improvements should lead even more homeowners to get out from under their negative equity by the end of 2013.
Image: iStockphoto
December 13, 2023
Mortgages