It is estimated that 1 in 4 homeowners is underwater with their mortgage - their home is worth less than the mortgage amouont. This may cause more homeowners to go into foreclosure, which would further reduce home prices. We'lll just have to wait and see if that happens, but if you plan to purchase a home prior to April 30th to take advantage of one of the tax credits, you will have a decision to make in the next few months.