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

One third of car owners owe debt of between $5,000 and $10,000, and almost one-quarter of trade-ins with negative equity carried more than $10,000 in debt, a new high.

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

Analysts warn that Country Garden could become insolvent if it had to write off large inventories, and run into negative equity if its asset values dropped over time.

From Reuters • Aug. 17, 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