Many U.S. mortgage borrowers calculated they owe more on their existing mortgages then their homes are worth. About 7.5 million properties have been report to have negative equity, and another 2.1 million will follow on that path if home prices decline another 5%

If the U.S. Labor markets added new-paying jobs and banks offered to work to modify homeowners existing mortgages would this negative decline in equity come to a halt?

Remarks and questions are always welcome.