A total 10.7 million homeowners nationwide owe at least 25 percent more on their mortgages than their properties were worth, according to RealtyTrac’s U.S. Home Equity & Underwater Report for September 2013.
However, another 8.3 million homeowners were either only slightly underwater or slightly above water during the same time period, putting them on track to potentially sell their properties within the next 15 months without having to resort to a short sale. These homeowners have a loan-to-value ratio (LTV) between 90 and 110 percent, meaning that some of them have slightly negative equity while others have slightly positive equity in their homes. This group of homeowners represents 18 percent of all U.S. homeowners with a mortgage as of September 1.
In the video below, RealtyTrac Vice President Daren Blomquist discusses the results of the report in greater detail, stating that rising home prices are offering a glimmer of hope now for even homeowners who are still deeply underwater on their mortgages. Read the full report.