Lot 22 · Upside Down Properties
Upside Down Properties: Finding Underwater Homeowners in PropStream
By FlipProperties Editorial TeamPublished October 12, 2026Updated October 12, 2026PropStream figures checked October 2026
A homeowner is upside down, or underwater, when they owe more on the property than it's worth. PropStream's Upside Down list shows homeowners with negative equity, where the outstanding mortgage balance exceeds the property's current market value. It's the opposite of a high-equity list, and it calls for a completely different approach.
Try this in PropStream AI Search
Paste this into AI Search and swap in your market:
“Find upside-down properties in [City, ST].”
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Negative
Equity — owes more than it's worth
Underwater
Also called
High equity
The opposite list
What is an upside down property?
A property is upside down when the mortgage debt against it is larger than its market value. If the owner sold at market value, the sale wouldn't cover the loan payoff. That's the core problem: an underwater owner usually can't sell the normal way without bringing money to closing or getting the lender to accept less.
When the lender agrees to accept less than the full balance, the sale is called a short sale. Short sales require the lender's approval, take longer than a standard sale, and are usually handled with a real estate agent or attorney who has short sale experience.
Looking for the opposite — owners with plenty of equity? See our high equity properties guide.
How to find upside down properties in PropStream
- 01
Open Property Search and choose the Upside Down lead list.
- 02
Set your market: city, county or ZIP code.
- 03
Narrow by property type, such as single-family homes.
- 04
Stack Pre-Foreclosures to find underwater owners who have also fallen behind on payments.
- 05
Treat equity figures as estimates and verify the loan and value details before acting.
Or describe it to AI Search in plain English. Prompts to copy:
- “Find upside-down properties in [City, ST].”
- “Show upside-down properties in [ZIP] that are in pre-foreclosure.”
- “Find upside-down single-family homes in [County] County.”
Is the upside down category worth working?
What works in your favor
- Underwater owners who need to sell have few options, so a workable solution is valuable to them.
- Stacked with Pre-Foreclosures, this list surfaces owners facing a real deadline.
- Underwater owners in pre-foreclosure may be open to a short sale before the property reaches auction.
What to plan for
- There's no equity to negotiate with. A traditional cash offer below market value rarely works here.
- Short sales depend on the lender's approval and timeline, not just the owner's.
- Many investors use this list mainly to exclude underwater owners from equity-based campaigns. That's a valid use too.
The opposite of an equity list.
Find upside down properties in your market this week.
Pull the Upside Down list for your market in PropStream, or use it to filter underwater owners out of your equity campaigns. PropStream offers a 7-day free trial.
Start your free trialUpside down property questions
What does upside down mean in real estate?
It means the owner owes more on the mortgage than the property is currently worth. It's also called being underwater or having negative equity.
Can you sell an upside down house?
Yes, but the sale has to cover the loan payoff. The owner either brings money to closing or asks the lender to approve a short sale for less than the balance.
What is a short sale?
A sale where the lender agrees to accept less than the full loan balance. It requires the lender's approval and usually takes longer than a standard sale.
How does PropStream define its Upside Down list?
PropStream says the list shows homeowners who are underwater, with negative equity, meaning the outstanding mortgage balance exceeds the property's current market value.
Can I find upside down properties with PropStream AI Search?
Yes. Type a request like "Find upside-down properties in [City, ST]" and AI Search applies the matching filters.
Affiliate disclosure: FlipProperties is an independent education site and a PropStream affiliate partner. If you sign up through our links, we may earn a commission at no extra cost to you. All feature details on this page come from PropStream's official documentation.