BY SHELLY BANJO AND NICK TIMIRAOS

Michael Underwood hasn’t made a full mortgage payment on his four-bedroom house in San Francisco’s East Bay area since early 2008. But he has yet to be evicted from the home, which includes a lagoon-style pool carved into the property’s natural sandstone.

The Alamo, Calif., home that he bought in 1999 is now worth about $1.05 million, less than the $1.58 million that he owes after refinancing several times.

“I feel guilty, it bothers me,” says the 63-year-old former mortgage banker, who says he depleted much of his savings and sold assets, including jewelry, to make house payments after he …