Search results
Results from the WOW.Com Content Network
For example, let’s say that your current mortgage loan balance is $360,000. But your home is only worth $300,000. In that case, you would have negative equity of $60,000.
It’s also known as having negative equity. For example, say Jane bought her home for $300,000, made a $30,000 down payment and borrowed $270,000. ... During the 2007-8 subprime mortgage crisis ...
Negative equity is a deficit of owner's equity, occurring when the value of an asset used to secure a loan is less than the outstanding balance on the loan. [1] In the United States, assets (particularly real estate, whose loans are mortgages) with negative equity are often referred to as being "underwater", and loans and borrowers with negative equity are said to be "upside down".
CoreLogic released its report on underwater mortgages this month, revealing that the number of mortgages with negative equity nationwide declined from 25.2 percent of all mortgages at the end of ...
Homeowners have negative equity — also known as being underwater or upside down — when they owe more on their mortgage than their home is worth. For example, if you had an outstanding loan ...
[73] [74] This major and unexpected decline in house prices means that many borrowers have zero or negative equity in their homes, meaning their homes were worth less than their mortgages. As of March 2008, an estimated 8.8 million borrowers – 10.8% of all homeowners – had negative equity in their homes, a number that is believed to have ...
Many homeowners found themselves with negative equity meaning the mortgage balance was considerably higher than the market value of the home also known as being "underwater". Many homeowners elected to default voluntarily on their mortgage. Being "underwater" means their home is no longer an asset to them.
An underwater mortgage, also known as negative equity, is when you owe more on your home loan (either a primary or a second mortgage) than the property is currently worth. In other words, the ...