You don't seem to understand the concept of financing

Va_landlord will pledge his house as collateral for the condition of the private(non-recourse) loan. If the debtor goes into default, the creditor will get the deed of the house because that's what the contract is written. The creditor will own the house. If the creditor wants his cash back, he can sell it in open market for whatever the house is worth.

所有跟帖： 

• Educate public, if the house drops the value, do I get my -山高月小- ♂ (329 bytes) () 06/26/2008 postreply 08:07:37

• Let me explain to you more about real life financing -miat42- ♂ (829 bytes) () 06/26/2008 postreply 08:17:07

• :) at 10% do you think he can make a business out from it? -山高月小- ♂ (477 bytes) () 06/26/2008 postreply 08:26:16

• By the way, I am not saying he will be default. -山高月小- ♂ (272 bytes) () 06/26/2008 postreply 08:39:28

• In a matured legal society, the trust is bound by contract -miat42- ♂ (238 bytes) () 06/26/2008 postreply 09:10:00

• Ha.. you have never done business deal. :):) -山高月小- ♂ (17 bytes) () 06/26/2008 postreply 09:34:04

• That is exactly what mean -Wisdom101- ♂ (271 bytes) () 06/26/2008 postreply 08:16:28

• I will lend him money if he offers 10% haha -miat42- ♂ (0 bytes) () 06/26/2008 postreply 08:18:37

• 10% -Wisdom101- ♂ (116 bytes) () 06/26/2008 postreply 08:39:48

• 10% is too low if your expected hyperinflation does happen. -stap- ♂ (18 bytes) () 06/26/2008 postreply 09:02:36

• Very logical because the loan term is only for ONE YEAR -miat42- ♂ (0 bytes) () 06/26/2008 postreply 09:06:30

• You have no idea what hypeinflation can do in just 6 months- -stap- ♂ (29 bytes) () 06/26/2008 postreply 09:35:02

• how about hyper inflation to wipe out leveraged debts? :) -山高月小- ♂ (0 bytes) () 06/26/2008 postreply 09:40:42