The use of the term “underwater” on mortgages tends to put fear into peoples minds and helps to create some of the problems we are facing now. “Underwater” means that the value of their home is less than the mortgage amount they owe. If a mortgage is 200,000 and the value of a home is 199,999 then you are “underwater”. It does not mean that they are necessarily in any trouble. Clearly, if someone has lost a job and cannot pay the mortgage then the lower value hurts them in terms of selling or refinancing. In most cases, these mortgages are not effecting people and have are not created problems. Unless you are trying to sell your home or refinance it, the true value is your enjoyment and the pleasure that you and your family have living there. The dollar value is irrelevant. Many people are taking advantage of these times to “walk away” and blame their reasons on the economy. Nothing has changed in their financial situation, they still have their jobs and they have their normal mortgage payment. Home values have already started to increase in many areas and this “underwater” issue will return to “above water” housing. Yes, there are many with problems but there are many more people abusing the system. Smart financial decision?…they should be put in jail. (MORE)