BonesOfTheMoon@lemmy.worldM to InsanePeopleFacebook@lemmy.world · 8 days agoSovcit tried to buy a house.lemmy.worldimagemessage-square20fedilinkarrow-up1125arrow-down11
arrow-up1124arrow-down1imageSovcit tried to buy a house.lemmy.worldBonesOfTheMoon@lemmy.worldM to InsanePeopleFacebook@lemmy.world · 8 days agomessage-square20fedilink
minus-squareryathal@sh.itjust.workslinkfedilinkarrow-up7·7 days agoIt’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.
minus-squarePieisawesome@lemmy.dbzer0.comlinkfedilinkEnglisharrow-up6·7 days agoThis 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
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.
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