CoreLogic: More Foreclosures Leads to Fewer Underwater Mortgages
”Negative equity is a primary factor holding back the housing market and broader economy” according to Mark Fleming, chief economist with CoreLogic.
Palm Coast, FL – December 13, 2010
There were fewer homeowners underwater on their mortgage at the end of the third quarter than the second quarter, but it’s because more properties that had severe negative equity were foreclosed upon not an increase in home values.
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Duh!
This has to be one of the silliest articles ever written. Not your fault Toby. I’ve seen it quoted elsewhere. Those homes that were foreclosed upon are just sitting in the bank’s REO inventory, obviously depressing prices just as much, if not more so.
This would be like saying people are healthier and there is a lower incidence of illness … because a good deal of the sick ones died.