CoreLogic: 38% of Home Equity Borrowers are Underwater

CoreLogic reports on something we all probably knew, but now we have a hard number to put on it.  Borrowers with home equity lines of credit (38%) are more likely to be underwater than borrowers without equity lines (18%).

The report also states that, of borrowers with negative equity, 2nd-mortgage borrowers have deeper negative equity (an average of $83,000) compared to single-mortgage borrowers ($52,000).

Other points of interest from the CoreLogic report (dated 6/7/2011):

  • 22.7% of all mortgaged residential properties were upside-down at the end of Q1 2011.  This is actually a slight improvement, down from 23% at the end of Q4 2010.
  • States with the highest percentage of negative equity properties: Nevada (63%), Arizona (50%), Florida (46%), Michigan (36%), & California (31%).
  • Positive equity borrowers had an average of 1.2 mortgages.  Negative equity borrowers averaged 1.6, and the number increases with deeper negative equity.

Equity Distribution (source: CoreLogic)

 

Mortgages per Property (by equity segment) (source: CoreLogic)

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