And the WORD for Today is:
Negative Equity – means the amount you owe on your home is less than the total amount of all outstanding liens against the property. For example if you refinance your home with a new mortgage totaling $150,000 but you could only sell it in the current market for $130,000 you have negative equity of $20,000. This is also frequently called being "upside down." This is also a strong argument AGAINST using refinancing as a means to consolidate non-secured debt into your mortgage loan. Once you are in a negative equity position it is nearly impossible to sell your home should you need to do so. It also frequently leads to foreclosure.
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You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased atwww.DovePublishingHouse.com.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased atwww.DovePublishingHouse.com.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
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