VICTORVILLE 
   U.S. homeowners who owe more than their house is worth will nearly double to 48 percent in 2011, according to a report by Deutsche Bank. 
For California the report is much more dire. It predicts that the state will see 90 percent or more of their loans “underwater” by 2011 creating a potential flood of foreclosures as homeowners just walk away. 

    Local REO specialist Craig Kudrle, director of REO operations for Shear Realty calls the prediction a little extreme. “I seriously doubt that would be the case unless, economically, the situation gets worse for our country,” Kudrle said.    “Jobs and job losses are the key to everything right now. The housing market is all linked to that.”
    The dire assessment comes amid a slight stabilization in the U.S. housing market after three years of price drops, according to the National Association of Realtors.
    The report states that the drop in home prices is fueling a vicious cycle of foreclosures as it eliminates homeowner equity and gives borrowers an incentive to walk away from their mortgage.
    But, the foreclosed homes are not coming onto the market because people are finding out they can stay living in them and not pay their mortgage, according to Kudrle.
    “The Obama administration is putting so much pressure on the banks and lenders to slow down the foreclosure process to try and keep people in their homes,” Kudrle said. “We have people who have not made a payment for 12 to 18 months and the bank still hasn’t come in to foreclose.”