What is an Upside Down Mortgage?
Since the housing prices have fallen a great deal, people are talking about having an upside down mortgage. However, do you know what an upside down mortgage really is? Many people may have an upside down mortgage or even mortgages without knowing the term.
When a homeowner has an upside down mortgage, it means he or she owes the bank more than his or her home is worth.
That means, even if he or she were to sell the home, he/she would not have enough money to pay the bank off. When someone has an upside down mortgage, it does not imply that they are in trouble.
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