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To President Obama: Please roll-up your sleeves and force lenders to cut on loan principals for underwater borrowers, stop takin

Obama has to stop taking advice from those mortgage lobbyists.

Roughly 10.7 million, or 23 percent, of all residential properties with mortgages nationwide are “under water,” according to third-quarter data from FirstAmerican CoreLogic.

If you’re under water, you owe more than the property is worth. It’s also called negative equity. It happens because of a decline in value, an increase in mortgage debt or a combination of the two.

California, with 2.4 million, and Florida, with 2 million, had the largest number of negative equity mortgages.

As we’ve noted in this space before, people who owe more than their properties are worth tend to give up and walk away, leading to more foreclosures and price declines.

FirstAmerican says many “upside down” borrowers financed their properties between 2005 and 2008, were enticed with introductory low payment rates and were told their property values may go up to refinance with cash-out. Then, a couple years later, it happened the opposite way especially for people with low income trying to built wealth. So they find their homes losing value, their payments doubled or tripled and couldn't keep up possibly with payments due to the lack of saving or may be the incidental loss of jobs or lay-offs.

If lenders are really smart they should initiate plans to keep the owners in their homes by lowering interest rates along with the principals with new equitable value, by refusing to do so; mortgage companies and banks tend to spend tons of money in keeping up with foreclosure costs--derailing the economy to its worse shape.

"Negative equity continues to be pervasive and to impact almost every segment of the housing market,” Mark Fleming, chief economist with First American CoreLogic, said in a statement. “The recent improvement in home prices this past spring and summer has slowed the increase in negative equity, but it will take a significant rebound in home prices, which we are not expecting, to offset the dampening effects of negative equity in the most depressed states."