What happens if your mortgage is worth more than your home?

This is called being "underwater" or "upside down." If you stay, nothing happens; you just keep making payments until the market recovers. If you need to sell, you have a problem. You either have to bring cash to the closing table to pay off the difference, or ask your lender to accept less than what is owed—a process called a Short Sale, which significantly damages your credit.

Hi Ryan! Stop worrying. Enjoy your house and take care of it. Property values may fluctuate in the short term, but generally increase over time, unless neglected or poorly located. Nothing "happens", except your equity grows.

Visions of the crash in 2008, the struggle is real.....

Mortgage is worth or you owe more than the house is worth? A Realtor can send you clarification on this as well as a CMA (market analysis) to confirm this. Most of the homes in Memphis purchased 2023 or earlier are not upside down.