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> Most don't sell, but a few do - and thats all you need to make the basis of a new market price. That seems like an elementary mistake for a buyer/lender (who
by lotsofpulp 2y ago
> Most don't sell, but a few do - and thats all you need to make the basis of a new market price.
That seems like an elementary mistake for a buyer/lender (who would be appraising the property for use as collateral). Unless the lender has a too big to fail guarantee where everyone but the taxpayer wins as long as a plausibly deniable deal is made.
As an aside, the linked article has no substance to support its theory.
- throwup238 2y agoThe banks don’t care because they package the loans up as securities and sell them to investors. The investors don’t care as long as they’re packaged up with a bunch of other healthy mortgages. This was one of the causes of the ‘08 financial crisis.