What does it mean to be "upside down" on a house?

The term "upside down" refers to a scenario where the owner of a home actually owes more on that home in the house would be worth if it were sold. It's not quite that simple because you have to also figure not only paying off the mortgage, but closing costs and MN real estate commissions as well.

People do not get "upside down" on purpose, however. It's usually a matter of having purchased their Minnesota home during a time when real estate was booming and now they happen to be in a time when it's declining. This cycle happens frequently and is nothing to be afraid of. It just means that at that time of decline is not an ideal time to sell your home if you can help it…

Obviously, the best time to sell your home is during the boom-time. This cycle has gone back and forth since the beginning of property ownership, and if you don't want to lose money, do your best not to make a purchase when Minnesota real estate boom is at its peak, and not to be forced to sell when real estate is declining.

The unfortunate part is no one can see when a "boom" is at its peak or a decline is at its bottom. Although news and other media love to be "Doom Sayers" about it all, your best bet is to speak with an experienced

Minnesota Realtor about the local cycles and their average length of time.