underwater homeowners

Underwater homeowners are individuals whose property’s current market value is less than the remaining balance on their mortgage loan. This situation means they owe more on their home than it’s worth if they were to sell it. Being underwater can make it challenging to refinance or sell the property without incurring a loss. It often results from a drop in home prices or taking out a large loan. Homeowners in this position may consider options like loan modifications, short sales, or foreclosures, depending on their circumstances and goals.