Posted by Batool Shamim on May 12, 2011 ·
It is the worst practice to sell the home on less price than the value of mortgage you have to pay. It is best that renting your home if you find an apartment on less rent to your home than the difference of your home, and your renting apartment can help you to reduce the debt value. Keep living in that apartment until you are sure you can pay all mortgages or take a small loan and pay all these as soon as possible.
Posted by Batool Shamim on November 23, 2010 ·
Equity is the difference between all the assets and all the debts. If the answer is negative, it is negative equity. Negative equity can lead to financial crisis for long terms. So avoid loans and other debt creating factors.
Posted by Batool Shamim on August 21, 2010 ·
Negative equity occurs when the home owner has a mortgage value that is more than his home’s market value. In a desperate attempt to make a quick sale, many home owner’s negative equity leads them to foreclosure.
Posted by Batool Shamim on May 13, 2009 ·
there is a problem with such kinds of loans that the interest rates may rise and fall with the value of the property, i.e., in case the value of the property decreases, the interest rates will increase and the homeowners will find themselves trapped in a negative equity which increases the amount of repayments.
