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An "underwater" mortgage is when the balance of the mortgage loan is higher than the fair market value of the property. This type of situation became common following the housing market crash that occurred in the late 2000s when many homeowners saw their homes lose a considerable portion of their value.
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In reality, however, there are many things that the federal government can do to help the middle class. To help remind. deal with the unique problems of underwater mortgages for some time to come..
Underwater mortgages are those situations where the homeowner is said to hold "negative equity" in his property – he is "upside down" – because he owes more to the lender than he can get if were to sell the property.. Which makes it tempting for many to consider what to do about this situation: should they walk away from it or keeping making a monthly mortgage payment that has no.