Mortgages Underwater

A recent report shows that over 10 million homeowners owe more on their home then they are worth. Many are taking it as a sign of more foreclosures to come. As values continue to plummet more and more homeowners will end up in this situation. California, Nevada, Arizona, Florida, and Michigan are among the states that has the highest rate of underwater mortgages.

According to CNN, "these five states have been especially beleaguered because of a high rate of prime loans that went bad. Many of those loans were option-adjustable rate mortgages, in which borrowers could choose to make minimum payments that were so low they did not even offset the interest being accumulated."