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CoreLogic: 11 million owe more than their homes are worth
Published on Aug 27, 2010

An estimated 11 million U.S. homeowners owed more on their mortgages than their homes were worth at the end of June, according to a new report from data aggregator CoreLogic.While the number of homes underwater actually declined by about 200,000 from an estimated 11.2 million in March, the biggest driver of that improvement was foreclosures, rather than price increases, CoreLogic said.For those who owe more than their homes are worth -- about 23 percent of all mortgage holders -- the bad news is that the CoreLogic report demonstrates a strong correlation between home-price appreciation and homeowner equity.In the first six months of 2010, homeowners with little or no equity in their properties saw their home's value fall by more than 1 percent on average, the report said. For homeowners underwater by 50 percent or more, property values fell by 2 percent, on average.In contrast, homeowners with equity of 50 percent or more saw their property values increase by more than 1 percent during...

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