“The Obama administration's plan to stave off foreclosures could fall flat in California, where nearly one-third of mortgage holders are underwater on their loans -- many of them by amounts that would disqualify them for government-sponsored refinancing.

“The problem is likely to be especially acute in areas like the Inland Empire, where homes have lost more than 40% of their value in the last year and nearly half the homeowners owe more on their loans than the properties are worth.

"‘They're underwater by six figures in many cases,’ said Greg McBride, a senior analyst with Bankrate.com. "‘Many homeowners in Southern California are left to twist in the wind.’”

(E. Scott Reckard and Peter Hong, “Obama Plan To Prevent Foreclosures Won’t Help Many California Homeowners,” Los Angeles Times, 3/5/09)