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Interesting facts

  • Upside-Down, also known as negative equity, refers to owing more on a loan than the value of the asset for which the loan was used to purchase. Upside-down loans occur when the asset depreciates in value, or was overvalued when the buyer purchased the asset.
    For instance, given that most cars rapidly depreciate in value, it follows that...
  • In corporate finance, Structural subordination refers to the concept that a lender to a company will not have access to the assets of the company's subsidiary until after all of the subsidiary's creditors have been paid and the remaining assets have been distributed up to the company as an equity holder. For example, if a lender loans money to...

Additional information


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100% Financed No Money Down Home Loans - USDA Loans

Popular Q&A

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How can a direct payment from a saving account to the lender become derogatory


It might be that there was not enough money in the account to honor the auto draft. Or in quite often the request date falls on a holiday or "non banking day". Thereby making the draft when it is implemented, appear as a late payment. In short a bookkeeping error, that can and should be corrected asap.