Negative Equity
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Negative Equity

A situation in which one owes more on a loan used to pay for an asset than that asset's current market value. For example, if one borrows $100,000 to buy a house and, for whatever reason, the value immediately drops to $60,000, the homeowner is said to have negative equity. Negative equity is most common after the burst of an asset bubble. One with negative equity is said to be upside down in the loan.

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Negative Equity (redirected from upside down)

Negative Equity
(redirected from upside down)