Underwater Mortgage

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Dictionary Says

Definition of 'Underwater Mortgage'

A home purchase loan with a higher balance than the free-market value of the home. This situation prevents the homeowner from selling the home unless s/he has cash to pay the loss out of pocket. It also prevents the homeowner from refinancing in most cases. Thus, if the homeowner wants to sell the home because s/he ca'’t afford the mortgage payments anymore, perhaps because of a job loss, the home will fall into foreclosure unless the borrower is able to renegotiate the loan.    

Investopedia Says

Investopedia explains 'Underwater Mortgage'

Underwater mortgages became commonplace in the aftermath of the 2000s housing bubble burst, and, combined with a bad economy, resulted in numerous foreclosures. In nonrecourse states, where mortgage lenders can't pursue borrowers for more money once their homes have foreclosed, many borrowers who could still afford their mortgage and other bill payments strategically defaulted on their underwater mortgages because they believed they were cutting the losses from a bad investment.

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Search results for

'Underwater Mortgage'

  • Avoid Foreclosure: How To Handle An Underwater Mortgage

    http://www.investopedia.com/articles/mortgages-real-estate/09/avoid-foreclosure-proper-handling.asp
    Avoid Foreclosure: How To Handle An Underwater Mortgage. May 06 2011 |
    Filed Under » Options, Personal Finance, Real Estate. The ...

  • Underwater Mortgage: Should You Hold Or Fold? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1209/Underwater-Mortgage-Should-You-Hold-Or-Fold.aspx
    ... Underwater Mortgage: Should You Hold Or Fold? Posted:
    December 3, 2009 11:49AM by Lisa Smith. ...

  • Mortgage Options For Underwater Homeowners

    http://www.investopedia.com/articles/mortgage-real-estate/09/selling-home-less-than-loan.asp
    Mortgage Options For Underwater Homeowners. April 29 2011 | Filed Under »
    Home Equity, Loans, Mortgages, Real Estate. Homeowners ...

  • Explaining Underwater Loans

    http://www.investopedia.com/video/play/what-are-underwater-loans-and-underwater-mortgages
    Videos /. Explaining Underwater Loans. Next video: Stocks Vs. Bonds. Feel like
    you're drowning in debt? It may be because your loans have gone underwater. ...

  • 5 Alternatives To Selling Your Home - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/5-Alternatives-To-Selling-Your-Home.aspx
    ... score suffering. If you have an underwater mortgage, sometimes the buyers
    have the power to negotiate with your lender. (To know ...

  • The Nation's Mortgage Horror Stories - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0911/The-Nations-Mortgage-Horror-Stories.aspx
    ... place, are unable to afford. (For more, see Avoid Foreclosure: How To Handle
    An Underwater Mortgage.). Overly Restrictive Practices In ...

  • 5 Worst US Housing Markets - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0911/5-Worst-U.S.-Housing-Markets.aspx
    ... The 49% of homeowners underwater is lower than the 51% that were underwater a few
    months ago. (Read Avoid Foreclosure: How To Handle An Underwater Mortgage.). ...

  • Underwater Companies That Haven't Drowned - Yet - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0210/Underwater-Companies-That-Havent-Drowned-Yet.aspx
    ... Although many underwater stocks trade at a perceived discount right now, there's
    a reason why investors favored ... Current Rates. Savings Home Equity Mortgage Auto. ...

  • Your Mortgage: When It's Time to Walk Away

    http://www.investopedia.com/articles/mortgages-real-estate/10/walk-away-mortgage-foreclosure.asp
    ... move any time a borrower could rent a similar dwelling for less than the cost of
    the mortgage. Add in the fact that many people were underwater to the tune of ...

  • Renters' Guide: Benefits of Renting | Investopedia

    http://www.investopedia.com/university/renters-guide/renters-guide3.asp
    ... The value, however, could also decrease, leaving homeowners with an underwater mortgage,
    where more money is owed than the current value of the home. ...

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