• tazeycrazy@feddit.uk
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    7 days ago

    Also if the government forse you into bankruptcy you will need to sell the house and the bank is going to be left holding the bag.

    • ryathal@sh.itjust.works
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      7 days ago

      It’s more that the government is first in line to get paid. The Bank doesn’t care a ton about you going bankrupt, as they are second only to the government in getting their money back.

      • Pieisawesome@lemmy.dbzer0.com
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        6 days ago

        This is the key point that the banks are concerned with.

        If the house is worth $100 and you owe the government $90, the bank can only recoup $10.

        It’s a terrible idea to fund this loan because you likely will only get Pennies back