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negative equity

   Also found in: Dictionary/thesaurus, Wikipedia 0.03 sec.
negative equity
the state of holding a property the value of which is less than the amount of mortgage still unpaid


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The salesman told them that after three years they'd be able to turn in the Jeep and the negative equity they'd accrued with the Chevy would be gone.
Bill Sinnett spoke with a number of private companies about their frustrations with FASB's ruling, now delayed, which they contend would portray many healthy companies as having negative equity.
The score, which is based upon the company's vast residential property data sources and proprietary home price forecast indices and loan attributes, identifies potential under or overvaluation of a known value -- as well as identifying potential risk of borrower default as a result of negative equity over the next few years.
 
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