One in every 20 mortgage borrowers on Long Island had no equity or negative equity in their homes, according to a second-quarter report from CoreLogic, which tracks home loans.
Data showed 5.4 percent of borrowers, or 29,092 properties, owed more than their homes were worth. Another 1.9 percent of borrowers, or 10,074 homes, had near-negative equity, with just 5 percent equity, CoreLogic said.
The numbers are slightly higher than CoreLogic figures from the first three months of the year, another sign of the toll on Long Island property values following inflated real estate sale prices and Wall Street's meltdown.
In the first quarter of this year, 5.30 percent of home loan borrowers, or 27,853 properties, had no or negative equity, CoreLogic said, while an additional 1.80 percent, or 9,422 properties, were on the precipice of owing more than their homes were worth.
Nationwide during the second quarter, more than one in five mortgage borrowers had no or negative equity, CoreLogic said. That’s 10.9 million borrowers, or 22.5 percent of homes with mortgages, the report said.
Another 2.4 million borrowers, or 5 percent of mortgaged homes, had near-negative equity, according to figures.
"High negative equity is holding back refinancing and sales activity and is a major impediment to the housing market recovery,” said Mark Fleming, CoreLogic’s chief economist.