negative equity

Definition

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.

Use negative equity in a sentence

With adjusted rate mortgages, it can often be surprisingly easy to find yourself having a negative equity in your home.

​ Was this Helpful? YES  NO 2 people found this helpful.

There was a lot of negative equity associated with it and that was normal for them and I did not want to take part in what they were doing.

​ Was this Helpful? YES  NO 2 people found this helpful.

I am sorry, but we cannot provide you a loan due to the negative equity on your currently financed truck as the value of the truck is only $2,000 and you owe $7,000 on the current loan.

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

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
negative election negative equity financing