underwater mortgage
Sinking home debt
An underwater mortgage is a home loan where the borrower owes more than the property is currently worth.
The term became widespread during the 2008 housing crisis when property values collapsed: Millions of homeowners found themselves with underwater mortgages after the market crashed.
Also called being "upside down" on a mortgage.
- negative equityOwing more than owned
- foreclosureLender seizes mortgaged property
- defaultPreset standard option
- walking awayDeparting on foot
- homeownerProperty title holder
American Dream · subprime · housing crash · loan · debt · drowning · sinking · trapped · upside-down · home value · property value · refinance · loan modification · principal · bailout · housing bubble · Great Recession · bank
- debtdebt, creditor, owe, debtor, lender
- mortgageshome loan, home loans, down payment, refinancing, refinance
- housing crisishousing bubble, housing crash, foreclosures, subprime loans, foreclosure
- financial crisesfinancial collapse, bank run, economic collapse, bank failure, bank failures
- Fixer-Uppersfixer-upper, handyman special, needs work, distressed property, gut job
- foreclosureforeclosure auction, forced sale, foreclosure prevention, foreclosure notice, foreclosure sale
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