It took a California homeowner in Merced just three years to see the value of her home plunge by more than half to $350,000. Next month, her mortgage payment jumps 20 percent to $3,321 and she knows she can’t afford it. Her bank won’t rework the loan unless she stops paying altogether.

“Now I know how people feel when I go knocking on their door,” said the homeowner, a real estate agent who works for a company that notifies residents in foreclosed properties that they must vacate. “I’m in their shoes.” (more…)