eli5 What does it mean to be “upside down” on your home loan and how does it happen?

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eli5 What does it mean to be “upside down” on your home loan and how does it happen?

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And in some cases the bank requests you pay up the difference asap. The bank uses your mortgage as a collateral for loans they take out from other banks. If all of a sudden your mortgage is less thrust-worthy they have an issue which they can make your issue. The financial system is a mess.

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