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The number of homes available in American foreclosure auctions now average 110,000 per month photo: Getty Images

10.8 M-22 5pc mortgages - houses were "underwater" in the third quarter, according to CoreLogic. Which decreased 11 m - 23pc - at the end of June and the decline in quarterly third straight.

With the collapse of the property values and unemployment by 10pc, the number of homes available in locking the American auction now averaged 110,000 per month, compared to approximately 98,000 during the same period a year earlier, said CoreLogic Chief Economist Mark Fleming.

"There are two ways to reduce negative equity," Fleming said Bloomberg. "Award recognition or provision, which means people are taken out of their homes." At this time, he did y more layout.

Paint an even darker image, U.S. home values will likely drop $ 1.7 trillion this year after the increase in seizures and buyer tax credit expires which seeks amplified at beginning of the year, according to data from the real estate company Zillow.

The value of real property held by us households declined $649bn for the third quarter to $ 16.6 trillion said the Federal Reserve. Morgan Stanley said last week that real estate prices can fall as much as most 11pc until 2012.

"House prices will fall in the spring of next more and bring more negative equity", added Mr. Fleming.

Approximately 2.4 m mortgage holders were less 5mC equity in their house from June to September, bringing total houses mortgaged under water or near negative equity amount to 27 5pc.

Banks have seized a record 288,345 houses in the last quarter, the three previous months 7pc and 22pc a year earlier, said RealtyTrac, real estate data service.

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The reflection group claimed Iain Duncan Smith, work and Pensions Secretary, to large swaths of scrap benefits system.

The influential group claimed of Iain Duncan Smith, work and Pensions Secretary, large parts of the system of benefits of scrap and spur people to work with a radical "negative tax."

Author of the document, Kristian Neimietz IEA investigator poverty, argued for the level of basic income support to be lowered and benefits which tax benefits for children, the winter fuel allowance and buses free passes to be abolished for the middle classes.

Instead, the document suggests setting a level of tax on the income of households, based on the number of members of the family.In the system, if the earnings were less level of game, the Government would pay a credit of the difference - négatif.Si income tax revenues are high, the household to pay tax.

Mr. Neimietz document wrote: "the access to benefits should be restricted to ways... that operate the condition of particular droit.En negative income tax should be conditional upon employment on a full-time basis, restricting the reception with low incomes who do their best to improve their situation."

He adds: "the rationale is simple: top up income from full-time low-paid workers is much cheaper than replacement of compensation for several days of work."

Model of M. Neimietz would see the end of the current system that pay taxes and prestations.Au place this households either would taxpayers or recipients of transfer, which he argued would improve the transparency and simplicity.

Academic, that shaped parts of his argument on the systems put to the test in the United States says that the system could save billions of pounds of well-being.

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