One of the things I learned from Bangalore's real estate market is to stop using Banks as some kind of proxy validation for things. Its always common to hear p

One of the things I learned from Bangalore's real estate market is to stop using Banks as some kind of proxy validation for things. Its always common to hear people say 'If banks lend a loan against X, X must be ok to buy'. In reality although banks do a bit of verification here and there. Its mostly they are looking for a way to recover their money from you. In many cases you will see the banks will happily lend money, and then if things go south, they will go after your collaterals or destroy your credit rating etc. Very rarely can you tell them, 'You approved of it, so bear the loss'.