According to CNNMoney.com, 21.5% of mortgages are currently under water in the 3rd quarter of 2010, which is an improvement from the previous quarter when an estimated 23.3% of loans were under water. There are a few reasons for this improvement, including the loss of homes to foreclosure and improving home values in some markets.
In the Philadelphia area, values appear to be on the up tick and there are less foreclosed homes here than in other large metro markets. Hopefully, this is another sign of an improved local housing market. Time will tell.