WICHITA — A real estate data firm says that 8.2 percent, or 7,506, of all Wichita area residential properties with a mortgage had negative equity — often called being "underwater" or "upside down" — in the third quarter.
An additional 4.7 percent, or 4,261, were in near negative equity in Wichita, according to the firm, CoreLogic.
It means more is owed on the mortgage loan than the house is worth. This typically happens because a house was purchased with no or little money down and the house has declined in value.
Nationally, according to CoreLogic, 10.8 million, or 22.5 percent, of all residential properties with mortgages were in negative equity at the end of the third quarter of 2010, down from 11.0 million and 23 percent in the second quarter. This is due primarily to foreclosures of severely negative equity properties rather than an increase in home values.