A Refinance Program To Help Those With Negative Underwater Mortgage Balances Simply put, an underwater mortgage is described as a home loan with an outstanding balance that exceeds both the fair market value of the property and the homeowner's debts. An underwater mortgage is also known as a negative equity loan or an adverse loan. Due to the fact that the property is being used as collateral, the balance of the loan becomes much greater than the value owed on the property. When the owner misses mortgage payments, this becomes a matter of serious concern for the lender and the consequences can be drastic. To determine whether a homeowner will qualify for an adverse loan or not, it is essential to assess the true value of your home. This may need to be done with the assistance of an appraiser who has access to the market value. A true market value assessment will more accurately reflect the true value of your home, allowing you to refinance or sell your home without having to worry