An over supply of homes discounted by banks, Freddie Mac, Fannie Mae, HUD and mortgage companies to sell-off the record volume of foreclosures is pressuring home values in the majority of the U.S. The supply leaves no shortage of real estate markets for the worst housing markets forecast in 2012.

Wall Street greed, manipulative business practices and banking fraud that ran wild led to the real estate collapse and after five years in the hardest hit regions of the country home prices are still falling. Thirty-six states markets are forecast to drop further as an increasing number of homeowners walk away from mortgages, pressuring home prices.

Record long high unemployment and underemployment has reshaped housing in the U.S. and will have a lasting impact on the country as more former homeowners turn to renting, and the percentage of homeowners is largely reduced for the long term.

The worst 25 housing markets forecast annually by Housing Predictor are a selection of the worst of the worst markets with the highest probability to reach their projected average home value losses during the calendar year.