The rise in housing prices since the recovery began two years ago has lifted the vast majority of homeowners back into the black, with only 10 percent now underwater on their mortgage as of March 2014, according to a new report from Black Knight Financial Services. 

"Looking at current combined loan-to-value (CLTV), we see that while four years ago 34 percent of borrowers were in negative equity positions, today that number has dropped to just about 10 percent of active mortgage loans. While negative equity levels have declined for both judicial vs. non-judicial foreclosure states from the peak of the crisis, non-judicial states are now at just under eight percent, as compared to 13.4 percent in their judicial counterparts," Kostya Gradushy, a Black Knight senior analyst, said in a statement. "Overall, nearly half of all borrowers today are both in positive equity positions and of strong credit quality – credit scores of 700 or above. Four years ago, that category of borrowers represented over a third of active mortgages."

According to Black Knight, the length of time delinquent loans are spending in foreclosure is also increasing, reaching an average of 966 days delinquent. More than half – 55 percent – of all loans in foreclosure are now more than two years delinquent, an all-time high.

Massachusetts was among the states suffering most from lengthened foreclosure timelines, ranking fifth among all states for the percentage of loans in serious delinquency, behind Mississippi, Nevada, Rhode Island and Alabama.

In March, the total U.S. loan delinquency rate was 5.52 percent, down 7.57 percent from February. Of all homes, 2.13 percent were in foreclosure, down 4.23 percent from February.