A new analysis from CoreLogic claims that improved home prices had led to a reduction in the number of borrowers underwater on their mortgages in the second quarter of 2012.

The data research company reported on Wednesday that 10.8 million homeowners in the second quarter of the year were classified as underwater, compared to 11.4 million in the first quarter of 2012.

2.3 million borrowers in second quarter were reported as close to being underwater due to having 5 percent equity remaining in their property. Percentage-wise, 23.7 percent of all homeowners in Q1 2012 were underwater, a figure that went down to 22.3 percent in Q2 2012. Underwater borrowers are those who have negative equity, or those whose homes are valued less than the value of the unpaid mortgage.

Despite concerns that the continuing trend of underwater homeowners could lead to more of them allowing the homes to be foreclosed rather than shouldering a huge unpaid mortgage bill, most continue to pay their home loans down and on time. CoreLogic added that there was a slight increase in the percentage of underwater borrowers current on their mortgage payments; this figure went up from 84.8 percent in Q1 2012 to 84.9 percent the next.

The total amount of negative equity went down from $691 billion to $689 billion. However, only 600,000 homeowners became “over-water” again in the second quarter, down from 700,000 in the first.

Among individual states, Nevada, Florida and Arizona were again among the leaders in terms of percentage of underwater homeowners. These three states and two others took up nearly 35 percent of the $689 billion negative equity for Q2 2012.