CoreLogic’s Q3 2010 Negative Equity Report says the number of homeowners who owe more than their homes are worth fell from 11 million in the second quarter to 10.8 million in the third quarter of 2010. The drop marks the third straight quarterly improvement. Mark Fleming, CoreLogic’s chief economist, said negative equity is slowly declining but recent gains could be threatened if home values weaken. The number of underwater borrowers has fallen by more than 500,000 this year. More here and here.