Banks finally getting the picture?

Approximately 23% of homeowners with a mortgage are underwater. Another 2.4 million homeowners are teetering on the brink, with less than 5% equity in their home. If home prices drop further over the next year many of those owners could end up with negative equity.

Now --- Half of homeowners who owe 50% or more on their home than it's worth and default do so strictly because of negative equity, according to a Federal Reserve Board study.

So --- Both GMAC Mortgage and Wells Fargo have started either reducing some mortgage balances, deferring payments or offering subsidized refinancing in areas with large declines in home values -- like Miami and Las Vegas.