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Underwater Mortgage Definition
Wednesday, October 2, 3:28 PM ET

In the wake of the financial crisis the term "underwater mortgage" has been used frequently on newscasts and in articles. An Underwater Mortgage is the situation whereby a home is worth less the mortgage balance on the homeowners loan. The problem in this situation is that the homeowner can't sell their house without also laying out the cash difference between the home's value and what is left on their mortgage balance.

For MarketNewsVideo.com, I'm Sayoko Murase.

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