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The lender has incentive to ensure that the value of the debt is greater than the initial outlay. That could be via a steady stream of payments, or via a handfu
by soVeryTired 8y ago
The lender has incentive to ensure that the value of the debt is greater than the initial outlay. That could be via a steady stream of payments, or via a handful of repayments plus a repossession and resale of the property.
If the loan originator thinks the latter is likely, I don't think it's unreasonable to call the loan predatory.