Negative Equity can happen for a number of reasons. For example, if you purchased your property during a market peak and prices dropped, you might be in negative equity. You could also find yourself in negative equity if you bought your property with a 100% or 95% mortgage, which leaves you highly reliant on capital growth to build your equity. Another reason for negative equity is a long-term local or national economic slowdown, or the sudden bursting of a housing bubble.
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