Finance
A Kentucky borrower is 'underwater' on their mortgage. This means:
AThe borrower is behind on mortgage payments
BThe loan balance exceeds the property's market value✓ Correct
CThe property is in a flood zone
DThe borrower's income has fallen below the qualifying threshold
Explanation
An 'underwater' (or 'upside down') mortgage exists when the outstanding loan balance exceeds the current market value of the property. The borrower has negative equity, which can complicate refinancing or selling the property.
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