freakazoid on Nostr: Look, there's another way to interpret this: - Banks are not our friends and they ...
Look, there's another way to interpret this:
- Banks are not our friends and they don't care if we (homeowners) go underwater
- Also, they don't collect the 20% collateral, you have to pay it directly to the realtor's company (security deposit +1d after you both agree on the transaction AND the remaining of collateral by the closing date) -- meaning this doesn't go to the bank, that lends you the 80% standing out payment (this goes to the realtors' company and after taking their cut the seller receives it in full, but after closing date)
- The collateral payment is just a way to guarantee that you get into the loan really exposed, with skin in the game, meaning that you HAVE to pay, otherwise if you default, you lose all of the collateral and the bank can dump the house at face value on foreclosure, pocketing-in any interest already paid off
- Banks are not our friends and they don't care if we (homeowners) go underwater
- Also, they don't collect the 20% collateral, you have to pay it directly to the realtor's company (security deposit +1d after you both agree on the transaction AND the remaining of collateral by the closing date) -- meaning this doesn't go to the bank, that lends you the 80% standing out payment (this goes to the realtors' company and after taking their cut the seller receives it in full, but after closing date)
- The collateral payment is just a way to guarantee that you get into the loan really exposed, with skin in the game, meaning that you HAVE to pay, otherwise if you default, you lose all of the collateral and the bank can dump the house at face value on foreclosure, pocketing-in any interest already paid off