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"The banks are trying to shoehorn an affordability fix into a negative equity problem," said Frank Pallotta, a managing partner of the Loan Value Group, which runs the homeowner incentive program used by PMI.
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In Glasgow, one debt adviser describes the city's negative equity problem as an "epidemic", though across Scotland as a whole the percentage of households with problem loans, at 11%, is smaller than the north-west, Yorkshire and Humberside, where the official figure is 15%.
The Treasury Department's program to mitigate the foreclosure crisis is ironically frustrating solutions to the negative equity problem.
The scale of the negative equity problem was partly due to the two types of mortgages that were on offer – inflation-indexed mortgages and low-rate loans indexed to foreign currencies ("FX loans").
Equity release is also a specialist area of advice which few advisers do well and still bears the hangovers of the negative equity problems of 20 years ago," he said.
Nationwide introduced a negative equity loan last year for existing customers.
It can easily live with a negative equity.
This is especially true with so many houses having a negative equity.
The problem is all the greater in property where people have borrowed money against the asset; too big a price fall will trigger negative equity, bad debts, problems for the banks and so on.
"The Court finds that the Respondent's behavior as an online persona is a significant negative equity," the judge said in his decision to deport her.
Unlike other government programs so far, it addresses negative equity, a foreclosure-fueling problem that is deteriorating as home prices fall.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com