More and more, banks are allowing short sales for homeowners whose
property value has decreased, and rather than writing off the
difference of the loan, they are making the sellers sign notes
promising to pay back the remainder over time. The result is a sharp
increase in the number of people making monthly payments towards
a mortgage on a house they no longer have any equity in. The number of
homeowners in the U.S. with negative home equity is around 10 million,
according to Moody’s Economy.com, which expects this total to rise to
12.7 million — or a quarter of all homeowners with mortgages — by
next June.