Report Shows 21% Of Homeowners Owe More On Mortgage Than Home Is Worth

That isn't good news for the banks that hold those mortgages because homes with negative equity are more likely to enter foreclosure.

During the first quarter of this year home values dropped 14.2 percent from the same period last year, according to real estate Web site Zillow.com.

Home values are down 21.8 percent from the height of the real estate frenzy/boom that was fueled, in part, by risky sub-prime mortgages and extension of credit based on viewing housing as a passive wealth-building tool.