More than one in every four mortgage holders in San Diego County owes more than the value of their home.
CoreLogic (NYSE: CLGX) released data showing that 28.3 percent, or 167,155, of all residential properties with a mortgage in the county had fallen into negative equity during the third quarter. That’s a slight increase from 28.2 percent, or 166,663 properties, in the second quarter.
Negative equity, also referred to as being upside down or underwater, occurs when borrowers owe more on their mortgage than the present value of the property itself. It can occur because of a decline of value, an increase in mortgage debt due to payment escalations, or a combination of the two.
In addition to those underwater, San Diego had another 30,863 residences, or 5.2 percent of those with a mortgage, that were in “near negative equity,” defined as less than 5 percent equity, during the third quarter. That’s up from 5.1 percent, or 30,096, of all properties during the previous quarter.
Nationwide, 22.1 percent of all residential properties with a mortgage, or 10.7 million residences, were upside down at the end of the third quarter, down from 10.9 million, or 22.5 percent, at the year’s midpoint. An additional 2.4 million borrowers were in near negative equity, together accounting for 27.1 percent of all American properties with a mortgage.