A homeowner who owes more on the mortgage than the mortgaged property is worth is referred
To as owning a home that is

A) "sequestered."
B) "underwater."
C) "in the red."
D) "in the black."

When a homeowner owes more on the mortgage than the property is worth, it is commonly referred to as being "underwater." This term comes from the idea that the homeowner is essentially drowning in debt, just as a person can drown in water. "Sequestered" refers to being isolated or separated, "in the red" refers to being in debt (similar to being overdrawn on a bank account), and "in the black" refers to being financially successful (similar to turning a profit). Neither of these terms accurately describes the situation of a homeowner with negative equity.