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.

News containing the term negative equity

Loading...



http://www.businessdictionary.com/definition/negative-equity.html




Enter your email address to get our free Term of the Day newsletter!

negative equity is...

Nearby Terms

Popular 'Accounting & Auditing' Terms

Search volume for negative equity

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z