While nearly 22 percent of Colorado Springs residents with home mortgages had negative equity in the third quarter of 2011, the high ratio represents improvement.
About 33,545 of all residential properties with a mortgage in Colorado Springs were worth less than their owners originally borrowed to pay for them, according to a report from CoreLogic, a real estate analytics firm. That’s 21.7 percent.
While the number is high, it’s slightly lower than the national average of 22.5 percent and improvement over the 22.1 percent of negative equity mortgages in Colorado Springs during the second quarter of this year.
Negative equity impacts borrowers’ abilities to refinance and their ability to sell their properties, leading to greater likelihoods of foreclosure.
Colorado Springs is in a much better position than many regions f the country.
Nevada has the highest percentage of homeowners with negative equity with 58 percent of mortgages being underwater. The other states with the highest rates include Arizona (47 percent), Florida (44 percent), Michigan (35 percent) and Georgia (30 percent). It’s the first quarter that Georgia surpassed California and the first quarter that California was not listed in the top five states for negative equity.