According to First American CoreLogic the number of borrowers in the Hampton Roads area that are under water is about 1 in 4. Actually they say 22% but that is pretty close. If home prices continue the slide of about 5% again this year, another 21,000 or so more borrowers will be underwater. I don't think our decline will be as bad as many new first time home buyers entered the market and stablized prices a bit.
Its kind of a circle, as home prices fall more borrowers are underwater, the more they are underwater the harder it is to sell the house (short sale), the harder it is to sell the house the easier it is to go into foreclosure, the more foreclosures you have the more house prices decline and you are back to full circle.