More Borrowers Underwater on Mortgages

With home prices still dropping in some areas during the last three months of 2010, more home owners are now finding themselves underwater on their mortgage, according to Zillow.com quarterly survey.

Twenty-seven percent of home owners with mortgages nationwide owe more than what their homes are valued--a 23.2 percent increase from just one quarter earlier.

Underwater mortgages often lead to foreclosure and higher foreclosure rates likely will soon follow, Stan Humphries, chief economist at Zillow, told CNNMoney.

Source: “30% of Mortgages Are Underwater,” CNNMoney (Feb. 9, 2011)