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So what happens when I borrow money from a bank to buy a house and I default on my loan? "They took a risk and lost"? Hooray. I get to keep my home.
by laichzeit0 11y ago
So what happens when I borrow money from a bank to buy a house and I default on my loan? "They took a risk and lost"? Hooray. I get to keep my home.
- gyom 11y agoWell, your house is used as collateral for the loan, otherwise the bank would never lend you that money. I'm not an economist, but I don't think that, in the case of Greece, the "house" (whatever it stands for) was used as collateral. I don't think there really was any collateral. I guess lenders just hoped that Greece would pay back, or would be pressured into paying back.
- drjesusphd 11y agoCountries are not owned by banks in the way a mortgaged house is. At least, I hope not.