[/QUOTE]
Quote:
Originally Posted by Bossxr8
Banks don’t want to be repossessing houses of paying customers. They are still making money off them.
Different story if they are falling behind in payments. But that would also apply if the house was worth much more than what is owed.
|
Agree. The lender would prefer not to crystallise a loss by taking possession of an asset and selling it for less than the amount owed. In large numbers it would also upset their capital ratios and require additional capital raising, which might be difficult in a credit crunch. No doubt the interest rate on such would be much higher than we might expect, especialy if the currency keeps falling.
Though i think you meant LESS than what is owed....?