Robert McLister·General·April 18, 2010Negative Equity A situation where your mortgage balance is greater than the value of your home. This can occur when you make a small down payment (e.g. 5%) and home prices drop considerably. Negative equity is problematic for people who can’t meet their mortgage payments. That’s because it eliminates the option of selling ones home to repay the mortgage in full. Like news like this?Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime. SUBSCRIBE! Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.