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Know\'st thou the land where the lemon-trees bloom, Where the gold orange glows in the deep thicket\'s gloom, Where a wind ever soft from the blue heaven blows, And the groves are of laurel and myrtle and rose
An underwater mortgage is a home purchase loan with a higher principal than the free-market value of the home. This situation can occur when property values are falling. In an underwater mortgage, the homeowner may not have any equity available for credit. An underwater mortgage can potentially prevent a borrower from refinancing or selling the home unless they have the cash to pay the loss out of pocket.
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