This is Eli Kantor. Passionate about all things real estate, I'm here to share insights, tips, and stories from this exciting world. Whether you're buying, selling, or investing, join me as we explore the ins and outs of the market together!
What happens when they evetually won't sell at all? Is that game over? For now they are selling at a discount but thats only fueling short sellers of the mortgages
At that point we would have a serious problem. Commercial real estate is closely intertwined with the overall economy, and there are a lot of American dollars tied up in the office sector and commercial mortgage-backed securities. If the trend continues, a lot of people could lose a lot of money.
Its smart for the banks or companies that bought the 2nd mortgages to sit on the side lines for years. Does it suck for the people? Yes, but they made their own decisions and knew the risk. Lots of people are doing that today. I see in my own circle of friends and family. They made the choices, they pay the piper
Sure, but taking part in riskier lending practices, both as a borrower and a lender, was common practice back then. Where it becomes unethical is when the lender told the borrower point blank that they were forgiven of the debt, when in reality they had sold it to someone else. Also, rather than telling the debtor immediately, the new creditors waited until home values got to where they are today.
