A growing number of people are underwater with respect to the valuation of their home. This simply means that they owe more on the house than what it is presently worth. This does not mean however that foreclosure is imminent. Economists have found that homeowners lose their house when two or more conditions come into play. After the home value drops, the homeowner either can’t make payments or stops making the payments voluntarily, believing that the value of the home will not rebound. In most cases however being underwater is a temporary state. By maintaining the mortgage payments, a homeowner can stay in their property while the market — and value – returns to acceptable levels.