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December 2013 CoreLogic Report: Top 10 Negative Equity States

By on March 10, 2014 in Market Updates

As a nation, the U.S. currently has 1,188,502 properties currently in some stage of foreclosure according to the recent Realtytrac Foreclosure report for the month of January 2014. The nation’s negative equity share released by Corelogic (a leading property information, analytics and services provider in the United States) for the fourth quarter (most recent report in December 2013) was at 13.3%. CoreLogic’s negative equity analysis showed nearly 6.5 million homes (13.3 % of all residential properties with a mortgage) were still in negative equity in the end of the fourth quarter’s report.

However, this is not necessarily terrible news, but encouraging news considering how far we have come as a nation in regaining equity since 2009. Mark Fleming, Chief Economist for CoreLogic seems to agree,

“The plight of the underwater borrower has improved dramatically since negative equity peaked in December 2009 when more than 12 million mortgage homeowners were underwater. Over the past four years, more than 5.5 million homeowners have regained equity, reducing their risk of foreclosure and unlocking pent-up supply in the housing market.”

Top 10 Underwater States

CoreLogic’s negative equity for the fourth quarter has been released revealing the top 10 negative equity states. Despite Nevada being the number one state with the highest negative equity share, it has improved by a 1.8% difference since the last report. The states among the top 10 are as follow:

1) Nevada – With a 7.74% rate of delinquency it is no surprise that the state is still at the top of the list for the number one state highest in negative equity. 30.4% of 541,000 total mortgaged properties are with negative equity as of December 2013 with an average distribution of 79.4% loan-to-value.

2) Florida – Not as much negative equity as Nevada and not too much less either, Florida’s current negative equity share is 28.1% of 4,048,000 total mortgaged properties. With 9.87% rate of delinquency, the state’s number of properties received for a foreclosure filing for the month of January 2014 was 19% her than a previous month but 13% lower than the same time a year ago.

3) Arizona – The state of AZ was reported in the fourth quarter of 2013 was 21.5% of 1,307,000 total mortgaged properties with negative equity share (as of December 2013). With 3.58% rate of delinquency and their current status for foreclosure filing for the month of January 2014 was 24% lower than the previous month and 58% lower than last year.

4) Ohio – Currently with 3.42% rate of delinquency, OH’s negative equity share was 19.0% of 2,148,000. Foreclosure filing reported for the state for the month of January 2014 was 23% higher than the previous month and 31% lower than the same time a year ago.

5) Illinois – 18.7% of 2,218,000 total mortgaged properties in IL are currently with negative equity. The state of Illinois has 4.62% rate of delinquency. Illinois’ foreclosure filing was 38% lower than the same time last year as of January 2014.

6) Rhode Island – With 18.3% of 233,000 total mortgaged properties with negative equity, RI currently has a 4.34% rate of delinquency. The foreclosure filing in Rhode Island was 1% lower than a previous month and 21% higher than a year ago.

7) Michigan – The negative equity for MI is still pretty high within 18.0% of 1,387,000 total mortgaged properties underwater. The state’s rate of delinquency was actually not as high as other fellow states with only 2.73%. Foreclosure filing for the state of Michigan was 13% lower than a month ago and 37% lower than the previous year as of January 2014.

8) Georgia – The rate of delinquency in Michigan is 4.55% with 18.0% of 1,640,000 total mortgaged properties underwater based on Corelogic’s data report. As of January 2014 foreclosure filing in Georgia was 12% lower than a month ago and 47% lower than the same time a year ago.

9) Mississippi – Mississippi’s rate of delinquency was 4.08% and there are currently 17.3% of 54,000 total mortgaged properties with negative equity. The state’s foreclosure filing for the month of January 2014 was 51% higher than the previous month but 35% lower than a year ago.

10) Maryland – 16.2% of 1,374,000 total mortgaged properties are with negative equity in the fourth quarter report. There are 5.52% rate of delinquency in the state of MD. Foreclosure filing for Maryland was 10% lower than a month ago but 98% higher than the same time last year.

Negative Equity is something that the nation has been battling with for a long time now, but with the help of the Home Affordable Refinance Program available today many underwater homeowners with high loan-to-values may now be eligible for a refinance on their current mortgage. Helping to reduce to a lower rate, making it more affordable so that they can make their payments on time, assisting in eliminating the rate of delinquency across the nation. However, all good things sometimes must come to an end, all underwater homeowners must act fast since the program will coming to a hault on December 31, 2015.

Click HERE for More info on the HARP Refinance Program

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About the Author

About the Author: Jessica Lucas is the managing editor for Mortgage Home Base, a top real estate finance blog dedicated to helping borrowers and home buyers understand the home loan process. Follow Jessica on Google +, and share your comments here. .
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