A property is considered to be “underwater” where the loan used to secure the purchase of a property has a balance that is greater than the fair market value of the property.

When a property is underwater, it becomes difficult to sell unless the borrower has cash available to cover the difference between the purchase price and the outstanding loan amount. Moreover, lit becomes even more difficult to negotiate a refinance with lenders when the property is underwater.

Recent studies indicate that there is still $1 TRILLION worth of underwater mortgage debt. With over 13 million homeowners being affected by this problem, it is critical to know that you are not alone in your fight, and that there are still options available to extricate you from this plight.

HAMP and HARP are options (it is important to note that each will take into account your payment history and other financial variables). Furthermore, if you no longer desire to retain the property, a short sale may be available, provided the lender is willing to waive any deficiency on the loan.