Upside Down Mortgage

Upside Down Mortgage

A mortgage in which the amount that a property owner owes on the loan is more than that property's current market value. For example, if one borrows $100,000 to buy a house and, for whatever reason, the value immediately drops to $60,000, the homeowner is said to have an upside down mortgage. Upside down mortgages are most common after the burst of an asset bubble.
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foreclosures and is gaining momentum as more homeowners lose the ability to pay mortgages, and other upside down mortgage holders walk away from their homes.
The number of homeowners with upside down mortgages is growing rapidly.