An individual purchases a home for $300,000, taking out a mortgage for the full amount. Shortly after, a widespread economic downturn causes the market value of the home to fall to $220,000, while the outstanding mortgage balance remains at $295,000. Which statement best analyzes the homeowner's financial situation?
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An individual purchases a home for $300,000, taking out a mortgage for the full amount. Shortly after, a widespread economic downturn causes the market value of the home to fall to $220,000, while the outstanding mortgage balance remains at $295,000. Which statement best analyzes the homeowner's financial situation?
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