negative equity

noun

The amount by which the market value of a property falls below the amount of the mortgage secured upon it.

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Meanings

nounnegative equity (countable and uncountable, plural negative equities)

plural negative equities

  1. countableuncountablebusinessThe amount by which the market value of a property falls below the amount of the mortgage secured upon it.
  2. countableuncountablebusinessThe situation in which a property is worth less than its mortgage.
Cite this entry
APA

negative equity. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/negative%20equity

MLA

“negative equity.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/negative%20equity. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “negative equity,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/negative%20equity.

Source: negative equity on Wiktionary, CC BY-SA 4.0.