Peeling the Onion: How Many Layers of Protection Do Lenders Need? - 12/13/10 11:43 AM
We've all heard it.  Those darn buyers, leaving the lenders out there holding the bag on these distressed properties, causing the national economic meltdown.  They promised to pay their loans back and now the lenders are taking these horrendous losses! 
Wait a minute.  Didn't the lenders protect themselves from this eventuality?  Let's count the layers of protection lenders used to minimize losses in the event of default on a mortgage.
First, the borrowers creditworthiness offered a layer of protection.  Simply put, could the borrower repay the debt?  Lenders ignored this in recent years and instead gambled that increasing equities would protect … (2 comments)

 
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Dennis Erickson

Bozeman, MT

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REMAX Realty Group

Address: 1933 North 22nd Avenue, Bozeman, MT, 59718

Office Phone: (406) 585-9595

Cell Phone: (406) 579-8967

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Insight into the real estate world of Dennis Erickson, real estate broker associate in Bozeman, Montana, the Heart of the New West! Observations about things Montana, sales tips, commentaries and directions to the best cinnamon rolls in town. Things you WANT to know about Bozeman Montana real estate and the Montana lifestyle.


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