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The buyer is the lender in this case, it either gets sold at auction for a profit (repays lender) or the lender just keeps it - they can bid as high as the loan
by pests 2y ago
The buyer is the lender in this case, it either gets sold at auction for a profit (repays lender) or the lender just keeps it - they can bid as high as the loan amount , they're just paying themselves.
The idea is to later resell it with additional time and prep for a better price.
- willcipriano 2y agoWhy not just start the bidding at the loan amount?
- pests 2y agoThey probably have fees + taxes they have to pay on the amount and want to reduce them. Why get hit with a (made up) 5% auction fee and 20% tax burden on $80m vs just $12m.