700,000 homes that WERE underwater aren't any more says an article this week in CNNMoney. As home prices improve, homes are worth more than they were. Of the homeowners that owed more than the home was worth in the first quarter of 2012, 700,000 are no longer in that position.
25.2% of all mortgage borrowers were underwater at the end of December, 2011. Three months later, only 23.7% of all mortgage borrowers were underwater. That's a difference of 700,000 homes.