Hat tip to the Big Picture Blog, and Bianco Research.

Money quote:

A 5% drop in home prices from current levels would likely push all the near-negative equity homes into the negative equity camp. In other words, a 5% decline in housing would mean at least 27% of homes would be underwater. A 10% decline, as predicted in the story above, would probably put one third of all mortgages underwater.


A Chart!