| 词条 | Negative equity |
| 释义 |
Negative equity occurs when the value of an asset used to secure a loan is less than the outstanding balance on the loan.[1] In the United States, assets (particularly real estate, whose loans are mortgages) with negative equity are often referred to as being "underwater", and loans and borrowers with negative equity are said to be "upside down". People and companies alike may have negative equity, as reflected on their balance sheets. HistoryThe term negative equity was widely used in the United Kingdom during the economic recession between 1991 and 1996, and in Hong Kong between 1998 and 2003. These recessions led to increased unemployment and a decline in property prices, which in turn led to an increase in repossessions by banks and building societies of properties worth less than the outstanding debt.[2] Since 2007, those most exposed to negative equity are borrowers who obtained loans of a high percentage of the property value (such as 90% or even 100%). These were commonly available before the credit crunch. Such cases are of course the most at risk from falls in property value.{{Citation needed|date=September 2018}} In an assetIn the owner-occupied housing market, a fall in the market value of a mortgaged house or apartment/flat is the usual cause of negative equity. It may occur when the property owner obtains second-mortgage home equity loans, causing the combined loans to exceed the home value, or simply because the original mortgage was too generous. If the borrower defaults, repossession and sale of the property by the lender will not raise enough cash to repay the amount outstanding, and the borrower will still be in debt as well as having lost the property. Some US states like California require lenders to choose between going after the borrower or taking repossession, but not both.{{Citation needed|date=September 2018}} It is also common for negative equity to occur when the value of a good drops shortly after its purchase. This occurs frequently in automobile loans, where the market value of a car might drop by 20-30% as soon as the car is driven off the lot.{{Citation needed|date=September 2018}} While typically a result of fluctuating asset prices, negative equity can occur when the value of the asset stays fixed and the loan balance increases because loan payments are less than the interest, a situation known as negative amortization. The typical assets securing such loans are real property – commercial, office or residential. When the loan is nonrecourse, the lender can only look to the security, that is, the value of the property, when the borrower fails to repay the loan.{{Citation needed|date=September 2018}} Negative net worthA person who has negative equity can be said to have "negative net worth", where the person's liabilities exceed their assets. One might come to have negative equity as a result of taking out a substantial, unsecured loan. For example, one might use a student loan to pursue higher education. Although education increases the likelihood of higher future earnings, potential alone is not a financial asset. {{Citation needed|date=September 2018}} In the United States, student loans are rarely dischargeable in bankruptcy, and typically lenders provide student loans without requiring security. This stands in contrast to lenders requiring borrowers to have an equity stake in a comparably-sized real estate loan, as described above, secured by both a down payment and a mortgage. An explanation for the willingness of creditors to provide unsecured student loans is that, in a practical sense, American student loans are secured by the borrower's future earnings. This is so since creditors may legally garnish wages when a borrower defaults.{{Citation needed|date=September 2018}} EffectsA homeowner who is under water might be financially incapable of selling their current house and buying another one.[3] See also
References1. ^America's foreclosure plan: Can’t pay or won’t pay?, Paragraph 5, The Economist (February 19, 2009). 2. ^{{cite news |url=https://www.independent.co.uk/news/negative-equity-set-to-pass-into-housing-history-1358889.html |title=Negative equity set to pass into housing history |date=October 18, 1996 |publisher=The Independent}} 3. ^{{cite web|title=Zillow's Humphries on U.S. Housing Market Outlook|url=https://www.bloomberg.com/video/zillow-s-humphries-on-u-s-housing-market-outlook-4Pd_Q7stQ7WpSRarylLKdQ.html|work=bloomberg.com|publisher=BLOOMBERG L.P.|accessdate=24 March 2014}} Further reading
| last = Irwin | first = Robert | authorlink = | coauthors = | title = Home Seller's Checklist: Everything You Need to Know to Get the Highest Price for Your House | publisher = McGraw-Hill Professional | date = | location = | url = | doi = | id = | page = 180 }}
| last = Nerad | first = Jack | authorlink = | coauthors = | title = The Complete Idiot's Guide to Buying or Leasing a Car | publisher = | year = 1996 | location = | url = | doi = | id = | page = 129 }}
4 : Mortgage|Credit|United States housing bubble|Negative concepts |
| 随便看 |
|
开放百科全书收录14589846条英语、德语、日语等多语种百科知识，基本涵盖了大多数领域的百科知识，是一部内容自由、开放的电子版国际百科全书。