Being underwater.

Underwater means that you owe more on your home or property than it is worth. An example of being underwater is having the value of your house drop below the amount of the mortgage.

How does it feel to be underwater??
You'd feel: intense tightening in your chest, suffocation, air hunger, a burning sensation in your lungs. Basically, a lot of discomfort! There are training techniques to hold your breath for longer, but most of us would begin to suffer from brain damage after just three minutes without good ol' oxygen.

Understanding Underwater
An asset is underwater if the price paid for it is more than its current market valuation. Broadly speaking any paper (unrealized) loss relates to an underwater asset.
More commonly, underwater relates to leverage or borrowing, where it means owning an asset that is worth less than an outstanding loan on that asset. In securities trading, this could happen in a margin account, where a trader owns a stock on leverage, but the company (stock) declares bankruptcy, and the stock holdings no longer cover the margin or loan the broker provided to buy the stock initially. The account is underwater, and the investor will need to find funds somewhere else to pay back the money (loan) they lost in the stock market. This is known as a margin call.
Such a situation can also occur with a non-financial asset. If a new car is purchased with a loan, the purchase almost immediately results in the buyer being underwater because the car will depreciate immediately once it is driven off the lot while the loan will be paid down slowly over years.

TO BE CONTINUED.....