underwater loans

Mayor Tony Mack of Trenton, N.J., has a bird's eye view of the housing crisis. According to local media reports, Mack's family home is facing foreclosure. Mack, who took over the leadership of New Jersey's capital city in June, owes his lender $369,000, according to Philadelphia's 6ABC.

Despite stimulus programs and all-time low mortgage rates, the real estate market in the U.S. continues to struggle with excess supply, depressed home prices and high rates of foreclosure. The key factor? Unemployment.