RealtyTrac: 9.1 Mln U.S. Residential Properties Seriously Underwater In Q1

(RTTNews) - RealtyTrac, an online marketplace for foreclosure properties, Thursday said its U.S. Home Equity & Underwater Report for the first quarter showed that 9.1 million U.S. residential properties were seriously underwater. This represents 17 percent of all properties with a mortgage in the quarter.

For these, the combined loan amount secured by the property is at least 25 percent higher than the property's estimated market value.

The first quarter negative equity numbers were down to the lowest level since RealtyTrac began reporting negative equity in the first quarter of 2012.

In the fourth quarter of 2013, 9.3 million residential properties representing 19 percent of all properties with a mortgage were seriously underwater. In the first quarter of 2013, 10.9 million residential properties representing 26 percent of all properties with a mortgage were seriously underwater.

The universe of equity-rich properties grew to 9.9 million, representing 19 percent of all properties with a mortgage in the first quarter. This is up from 9.1 million, representing 18 percent of all properties with a mortgage in the fourth quarter of 2013.

Equity Rich means loan to value ratio of 50 percent or lower, meaning the homeowner had at least 50 percent equity.