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Does anyone have any insight as to whether this 2% additional cost can/will trigger the banks to reassess borrowers and potentially hit them with a margin call?
by djfergus 10y ago
Does anyone have any insight as to whether this 2% additional cost can/will trigger the banks to reassess borrowers and potentially hit them with a margin call?
If it doesn't drive forced sales I can't see the prices falling significantly.
- reverend_gonzo 10y agoBanks can't perform margin calls on property. That simply doesn't exist. If you have a mortgage, that is a contract. As long as you are paying the mortgage off as agreed upon, the banks can't take your house.
- jcriddle4 10y agoActually I think something like it used to exist. While not a "margin call" a bank could call you and tell you to repay the full amount immediately. I think even today some loans are structured so if you miss a few payments the full amount becomes due. In theory, in a more libertarian market, a loaner could structure the loan any way they pleased.
- beachstartup 10y agothere are no margin calls on a mortgage, and most of these buyers paid cash out of pocket anyway.