Last reviewed 08-20-2026Short-Sale.com Editorialglossary
NEGATIVE AMORTIZATION
California Department of Real Estate
Updated 08-20-2026
NEGATIVE AMORTIZATION
Occurs when monthly installment payments are insufficient to pay the interest accruing on the principal balance, so that the unpaid interest must be added to the principal due.
California Department of Real Estate Glossary
California Department of Real Estate · p. 23
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