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If you own 100 houses and you lose one you still have 99 houses. If you sold it at a loss because it was costing you too much to keep then you made a smart deci
by idontwantthis 3y ago
If you own 100 houses and you lose one you still have 99 houses. If you sold it at a loss because it was costing you too much to keep then you made a smart decision.
- FireBeyond 3y agoYou're not selling it at a loss though, you're defaulting on a loan obligation.
- idontwantthis 3y agoThat has its own cost. If that’s less than keeping it then it was a good decision.
- theonlybutlet 3y agoSadly it's gotten to the point where these guys are too big for the bank to be concerned with whether they do something unethical like default. The bank takes the knock,carries on as if it's business as usual in an effort to prop up their own revenue. Too big to fail I guess.
- jankyxenon 3y agoCommercial loans are priced higher than residential. The higher risk of default is built into the economics. The bank also has rights on the property after it goes into default. They don't lose all their money.