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How Bad Is Negative Equity?

April 26, 2017bad equity negative

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How Bad Is Negative Equity?

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Can be very bad for your finances. If property prices decline drastically your house will deteriorate in value even though you continue to pay for the original inflated value via your mortgage. Basically with negative equity the value of your property falls below the outstanding mortgage debt. Its terrible news if you want to move or sell your house. This term first gained notoriety in the 1980s in the UK as a result of major economic recession and a rapid decline in property prices.