Dictionary of Real Estate Terms: underwater
underwater
slang term used to refer to a property whose debt exceeds its value.
Example:In 1995, on the basis of an inflated appraisal, an excessive mortgage was secured on an industrial facility. Now, as a result of economic recession due to plant closings, combined with a general movement of industry away from the facility's location, the property value has plummeted. Both the property and the loan may be referred to as underwater.
