20% of Springs properties in negative equity

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Nearly 20 percent of Colorado Springs’ residential properties were in negative equity for the first quarter of this year.

According CoreLogic, 30,032 properties, or 19.6 percent, fell into that category during the period. Another 9.7 percent of locally owned homes, or 14,894, were within 5 percent of being in a negative equity.

However, those numbers were not enough to put the city on the top 50 list.

Denver-Aurora and Broomfield were ranked among the the 50 metropolitan areas with the highest number of negative equity mortgages – those in which debt exceeds a property’s value by 25 percent or more.

And the drama will likely continue, especially in five states. In Nevada, where 70 percent of all mortgaged homes are 25 percent or more “under water,” the situation is especially bad. Arizona follows with 51 percent.

Fortunately the negative equity trend does appear to be slowing.

CoreLogic said that more than 11.2 million, or 24 percent, of all U.S. residential properties with mortgages, were in negative equity at the end of the first quarter of 2010, down slightly from 11.3 million and 24 percent from the fourth quarter of 2009.

Together, underwater mortgages accounted for over 28 percent of all residential properties with a mortgage nationwide.