Sounds like the banks are just dumb at the surface level. If they take a collateraled loan and pay you get a paid loan. If they take it and fail to pay you eith

Sounds like the banks are just dumb at the surface level. If they take a collateraled loan and pay you get a paid loan. If they take it and fail to pay you either get paid by the proceeds of the sale or real estate for peanuts compared to the cost basis to hold and sell for a way better rate later.