negative equity
Definition
Situation where the market value of a mortgaged asset is below the amount of loan taken against it. Some loan agreements require the borrower to make up the shortfall. Where the market value continues to fall sharply, the lender may 'call' the loan by demanding immediate full payment of the balance loan amount.
Popular 'Accounting & Auditing' Terms
negative equity in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/negative-equity.html
