Difference between revisions of "Credit Crunch"
From Wikicliki
Line 1: | Line 1: | ||
− | + | == WHAT IS SO BAD ABOUT THE KREDIT KRUNCH? == | |
'''Negative equity''' is a term used to refer to when the value of an asset used to secure a loan is less than the outstanding balance on the loan. In short, when someone buys a house on a loan and the house price falls drastically after the purchase, the buyer is left with a massive mortage he has to pay off, and a low house valuation by the bank. This often leads to bankruptcy and house repossession. | '''Negative equity''' is a term used to refer to when the value of an asset used to secure a loan is less than the outstanding balance on the loan. In short, when someone buys a house on a loan and the house price falls drastically after the purchase, the buyer is left with a massive mortage he has to pay off, and a low house valuation by the bank. This often leads to bankruptcy and house repossession. |
Revision as of 11:40, 26 November 2008
WHAT IS SO BAD ABOUT THE KREDIT KRUNCH?
Negative equity is a term used to refer to when the value of an asset used to secure a loan is less than the outstanding balance on the loan. In short, when someone buys a house on a loan and the house price falls drastically after the purchase, the buyer is left with a massive mortage he has to pay off, and a low house valuation by the bank. This often leads to bankruptcy and house repossession.