According to Moody's, 15.4 million homeowners are currently under water; this number is up from an estimated 13.6 million at the end of 2008 and it appears that the number will continue to rise over the next couple of years.

Contrary to CNBC's Jim Cramer and Larry Kudlow, the housing market is not nearing a bottom, in fact, nationally speaking the housing market is no closer to a bottom than it was last year.  What this means is that based on the ongoing supply and demand imbalance for housing due to rising foreclosure rates caused by a deteriorating job market and weak demand, there is every indication that the national housing market could continue to lose 8-12% in value per year over the next two to three years.

In the absence of a meaningful housing stimulus plan, the number of zombie homeowners will only escalate, further complicating any efforts towards a housing recovery.