Finance
A Missouri loan that is 'underwater' or 'upside down' means:
AThe property is in a flood zone
BThe loan balance exceeds the property's current market value✓ Correct
CThe borrower owes back property taxes
DThe interest rate is higher than current market rates
Explanation
An underwater mortgage means the borrower owes more on the loan than the property is worth. This can trap homeowners who cannot sell without a short sale or paying the lender the difference.
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