A new analysis by the Deutsche Bank of the battered housing and mortgage markets estimates that 48 percent of US homeowners with mortgages or 25 million borrowers will be underwater before home prices are expected to stabilize which is expected to be in the beginning of 2011.

According to the report, the worst hit metro areas are Merced and El Centro California, both at the rust belt where 85 percent of the borrowers in the area are underwater.

Others areas include the following: Modesto, California with 84 percent followed by Las Vegas and Stockton California both with 81

The leading Florida cities are Cape Coral with 76 percent and Orlando 71 percent. In the Midwest, Mansfield and Cleveland, Ohio, topped the list with 54 percent each.