Equity skimming is a type of real estate fraud where an investor takes out a loan exceeding the property's value, often via fraudulent means, and then collects rent on the property without making mortgage payments, increasing negative equity.
A real estate term used to describe a situation where the market value of a property is less than the outstanding balance on the mortgage. This condition can complicate selling the property or refinancing the mortgage.
An upside-down mortgage occurs when the balance of a mortgage loan is greater than the value of the property securing the loan. Homeowners with such mortgages have negative equity and cannot sell or refinance the property without incurring losses.
