20% Of Borrowers “Under Water"

U.S. Must Step Up Foreclosure Efforts

Foreclosures may begin on 2.25 million homes this year, more than double the pace before the financial crisis, he said. Estimates show as many as 20 percent of borrowers may now be “under water,” where their mortgage is bigger than the price of their home, Bernanke said. “Despite good-faith efforts by both the private and public sectors, the foreclosure rate remains too high, with adverse consequences for both those directly involved and for the broader economy,” Bernanke said.