negative equity

British  

noun

1. the state of holding a property the value of which is less than the amount of mortgage still unpaid

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Example Sentences

A homeowner is considered to be underwater on their mortgage when they owe more to their lender than what their home is worth — a position also referred to as negative equity.

From MarketWatch • Feb. 9, 2026

Edmunds says 28.1% of trade-ins had negative equity in 3Q, up from 24.2% in 2Q and the highest share on record since 1Q 2021.

From The Wall Street Journal • Oct. 16, 2025

Postecoglou started with negative equity, which has already diminished, having never been a favoured appointment of the fans, but the 60-year-old feels victories will appease the doubters.

From BBC • Oct. 3, 2025

The company is "very likely to fail on debt restructuring, and with negative equity, Evergrande may go into bankruptcy, which includes bankruptcy reorganisation and bankruptcy liquidation," UOB Kay Hian wrote in a note on Wednesday.

From Reuters • Sep. 27, 2023

In February, 44.2 percent of new vehicles purchased had a trade-in, and 18 percent of those trade-ins had negative equity, meaning they owed more on the car than it was worth.

From Washington Post • Apr. 5, 2023