There is 20 percent of homeowners across the country that owe more on their homes than the home is worth. This may help many potential home buyers purchase their first homes at a low price, but overall, it hurts the economy and hurts those that are trying to refinance before they end up falling into foreclosure. The banks will not refinance the property if the borrower owes much more than the property is worth.

Fannie Mae and Freddie Mac will refinance homeowners as long as their loans reach the maximum of 105 percent of the homes value. The government is planning to increase the percentage to make it easier for homeowners to get refinanced through Freddie and Fannie. There were more than 17 percent underwater in the fourth quarter of 2008 and that number has increased into 2009.

Pending home sales have increased in March of this year by a little more than 3 percent. However, there are many areas across the country that is suffering from dropping home prices. Las Vegas properties have dropped by 67 percent. Stockton, California saw their properties drop by 51 percent and Modesto also dropped by almost 51 percent. Reno, Nevada and Vallejo-Fairfield, California have dropped between 46 to 48 percent. Orland and Port St. Lucie, Florida have seen their properties drop by 41 to 43 percent. Phoenix, Arizona dropped by almost 42 percent and Riverside, California dropped by almost 43 percent.