3 ms·
> Why do they still owe $8M if the loan was changed to $4M? The loan wasn't changed to $4M, the appraisal of the property was. They bank already paid the $8M
by monocasa 5y ago
> Why do they still owe $8M if the loan was changed to $4M?
The loan wasn't changed to $4M, the appraisal of the property was. They bank already paid the $8M to the previous owner (and their bank), but if it gets revalued, then the bank only has $4M of collateral against an $8M loan and starts looking for that lost money.
- executesorder66 5y agoAh okay. That makes more sense. I was confused by the wording "therefore the maximum loan is reduced to $4M."