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never considered that. is this true? were banks giving mortgages using stock as collateral / proof of credit-worthiness? how widespread is this?
by localhost3000 14y ago
never considered that. is this true? were banks giving mortgages using stock as collateral / proof of credit-worthiness? how widespread is this?
- tatsuke95 14y agoSounds bit of an odd practice to me, since a mortgage is such a straight-forward, easy-to-get loan that the Mexican landscaper can get one even though he doesn't live in the country. But I believe it. Shares in a company are real assets, and this is the Valley. Interesting story.
- melvinmt 14y agoMexican landscapers can't buy multi-million dollar homes (assuming that's the range we're talking about here). Other than that, can't really feel sorry for hurt millionaires, it sucks for them, but there are more pressing problems in the world to worry about.
- retube 14y agoactually pretty common for high net worth individuals. If you earn 300k a year but have stock worth $10m then yeah banks will lend you way, way above what your income alone would support (ot at least they did prior to the credit crisis. One of the lehman bosses had loans of nearly 50m collaterised with his stock... which went to zero)