BonesOfTheMoon@lemmy.worldM to InsanePeopleFacebook@lemmy.world · 2 months agoSovcit tried to buy a house.lemmy.worldimagemessage-square17fedilinkarrow-up137arrow-down10
arrow-up137arrow-down1imageSovcit tried to buy a house.lemmy.worldBonesOfTheMoon@lemmy.worldM to InsanePeopleFacebook@lemmy.world · 2 months agomessage-square17fedilink
minus-squareryathal@sh.itjust.workslinkfedilinkarrow-up3·2 months 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-up1·2 months 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