When a home loan is underwater, it means the house is worth less than what the owner owes on mortgage.
This situation usually prevents the homeowner from selling their house, unless they pay it directly out of their pocket. It can also prevent homeowners from refinancing.
In a worst case scenario, if the homeowner can no longer afford their mortgage payments, the home would fall into foreclosure unless the borrower is able to renegotiate the loan.
While homeowners in others states are drowning in mortgage loans, Texomans are also taking on the debt.
Here are some of the counties where homeowners are underwater on their mortgage:
- Archer: 25%
- Clay: 15%
- Montague: 33%
- Wichita: 20%
- Young: 22%
For an interactive map of houses underwater in your area, and all over the U.S., head to Zillow.