Negative equity down dramatically from housing crisis peak

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More people are continuing to throw off the shackles of underwater mortgages, and significantly fewer are suffering the misfortune of foreclosure, CoreLogic reported.

The share of homeowners who owe more on their mortgages than their homes are worth has fallen dramatically since its peak of 25.2 percent of all homeowners, or 12.1 million borrowers, CoreLogic said in its latest MarketPulse report.

In the second quarter of 2013, only 14.5 percent of homeowners, or 7.1 million borrowers, were still underwater, CoreLogic said.

The report also noted that in August foreclosures decreased by the largest margin seen, 33 percent, since the beginning of the housing crisis.

Mortgage fraud risk in the second quarter of 2013 was down by 5.6 percent year over year, but the dollar amount of fraudulent applications is actually at a higher level, thanks to more mortgage applications and higher home prices, according to the report.

“Superficially, it may seem that these two indicators are at odds with each other,” the report said. “But the index measures the propensity for fraudulent applications independent of the size of the mortgage market or changes in the prices of homes.”

Source: CoreLogic