Home equity levels remain high even as price appreciation cools
Home-price appreciation is slowing to about 3% while homeowner equity remains historically high, though negative-equity share rose to 2% and regional declines exist.
What Happens If You Sell Your House for Less Than You Owe?
Homeowners can sell for less than owed by paying the shortfall at closing or obtaining a lender-approved short sale; each option has financial consequences.
Homeowners in areas like Texas and Florida are experiencing negative equity, where their home value is less than their mortgage, a situation termed as "underwater." This issue is localized compared to the broader crisis of the 2008 housing bubble.