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> What do the lenders do when the owner can't make the loan payments Doesn't that cause a repossession? So the banks somehow pushed a minimum rent clause to t
by Elucalidavah 3y ago
> What do the lenders do when the owner can't make the loan payments
Doesn't that cause a repossession?
So the banks somehow pushed a minimum rent clause to the mortgages, and now they're going to win big by repossessing in a market where the rent doesn't get high enough?
- mattnewton 3y agoI don’t think winning big looks like owning property that couldn’t be profitably rented out by a professional land lord. Maybe on long time horizons it will, but in the short term that looks like losing your shirt but getting to keep your hat and pants.
- SkyPuncher 3y agoIf someone has already paid you x% of a property, it’s a lot easier to sell that and still make a massive profit.
- keep_reading 3y agoBut they have to lower its value to sell it. This has a domino effect on property values