can you explain how mortgages went underwater in the Great Recession?

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Mortgages went underwater during the Great Recession because property values crashed below the remaining loan balances. This happened due to loose lending standards, adjustable-rate resets, and a massive drop in home prices. 

The Housing Bubble and Risky Loans

Easy credit: Lenders offered loans with little or no down payment, requiring no proof of income or jobs (subprime and NINA loans).
Adjustable rates: Many loans started with low "teaser" interest rates that later jumped much higher.
Rising prices: An influx of buyers pushed home values to artificial highs, masking the risk. 

The Price Collapse

Defaults: When teaser rates ended, monthly payments spiked past what borrowers could afford, leading to a wave of defaults and foreclosures. 
Supply glut: Foreclosed homes flooded the market, driving property values down sharply. 
Negative equity: As home values dropped by 30% or more nationwide, millions of homeowners owed more than their properties were worth, trapping them underwater. 

If you'd like, I can explain:

• How these mortgages were turned into mortgage-backed securities
• The role of credit rating agencies in the crash
• How the crisis affected global banks

Let me know what part of the financial crisis you want to explore next.

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