Our Definition of Negative Equity
- Negative equity is the amount of money you would still owe if you sold your property and repaid the mortgage with the proceeds.
- Negative equity is also the condition of being in a position where the property is worth less than the mortgage or secured loans but the loss is not crystallised.
- The amount in cash between what you would get for selling a house and the mortgage or borrowing against that house. The opposite of (positive) equity where your house is worth more than the loans.
- A crystallised negative equity needs addressing to protect your credit rating and financial well being. It may lead to an agreement with, or have been precipitated by your creditors. Whatever the situation get the best independent advice that you can.
Other Definitions of Negative Equity
- Negative equity occurs when the value of an asset used to secure a loan is less than the outstanding balance on the loan wikipedia
- Negative equity is the term commonly used to describe the situation of having a home that is worth less than your mortgage. Insolvency helpline
- This occurs when there is a fall in the real value of the house. It means that if somebody wanted to sell their house they would get less for it in real terms than the original buying price. Houseprices.co.uk
- The difference between the value of an asset and the outstanding portion of the loan taken out to pay for the asset, when the latter exceeds the former. Negative equity can result from a decline in the value of an asset after it is purchased. Investor words
- when someone’s house has become less valuable than the amount of money they borrowed in order to buy it Cambridge dictionaries
Read Negative Equity you are not alone
