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It's not just property tax. The investors who fund the mortgages would have to take a haircut. Which could destabilize banks, pensions, insurance companies, any
by supertrope 6y ago
It's not just property tax. The investors who fund the mortgages would have to take a haircut. Which could destabilize banks, pensions, insurance companies, any institution relying on endowment earnings to operate, etc.
- floatingatoll 6y agoThey're investors. Investments are not guaranteed. They're going to take the same haircut either way, whether or not the suspension of payments is carefully handled to avoid bankruptcy or is forced upon them by bankruptcy. I think that bankruptcy filings by the lender offers a higher risk of the haircut becoming permanent, relative to temporary declarations of easement throughout the lending chain.