Although many upbeat indicators suggest that emergence from the recession is well underway, a seemingly equal number of findings warn us that we’re not out of the woods — or water — just yet.

The latest on the bad news side of the scale comes from CNN’s Money section. The report declares that 10.7 million homeowners are stuck with properties that are valued at less than what is owed. That’s 1 in 4 “underwater” mortgages.

What does this mean? We may see a high rate of foreclosures to continue into the foreseeable future.

The states with the highest rates of underwater mortgages were Nevada, Arizona, Florida, Michigan and California.

For the optimistic outlookers, there’s hope that the rising home value trend will buoy many at-risk homeowners above the “waterline.” I’ll hop aboard that ship…or any that stays above water, for that matter.

Are you seeing a lot of foreclosures in your area? Tell us.

Credit: CNN Money