As China’s real estate crisis lingers, a growing number of mortgages are falling into negative equity, putting financial pressure on individuals and institutions. Homeowners face the dilemma of continuing payments on properties with declining values or risking default and legal action. Banks battle increasing bad loans and reduced margins, and financial authorities promise to investigate the situation. Despite recent measures to revive the property market, experts warn of further price declines, leaving homeowners vulnerable to losses and negative equity.