The fair market value of the property above and beyond any amounts being owed by any secured debts like mortgage and HELOC’s. It is basically the difference between the price that a home could be sold for in an open real estate market less the amount still owing on any mortgages. An example would be a home appraised for $1,000,000 that has an outstanding mortgage balance of $600,000; there would be $400,000 of equity remaining in the home ($1,000,000 – $600,000 = $400,000)