'Under water' mortgage a growing threat

Long before she filed for bankruptcy, Ann Neukomm was "under water" - she owed more on her mortgage than her house was worth - a situation more and more Americans are finding themselves in.

As the financial crisis hits Main Street America, nearly one in six US homeowners are finding themselves in the same position, threatening the US economy with a new wave of foreclosures and bankruptcies.

About 12 million US homeowners owe more than their homes are worth, compared with 6.6 million at the end of last year and slightly more than 3 million at the close of 2006, said Mark Zandi, chief economist at Moody's Economy.com.