Mark in SF

Citi's Flip-Flop on Mortgage Cramdowns: A Really Bad Idea

nino: " I do home loans and lend hard money. As of today, I do not do hard money loans at any price. "

Hey nino: I suggest you do not lend more money than a property is worth, if the only collateral is that property.

DUH!

Citi's Flip-Flop on Mortgage Cramdowns: A Really Bad Idea

This article is absurd. If someone someone has made a legitimate claim to bankruptcy, they will be walking away on the property anyway, leaving the bank with the collateral worth what their crammed down loan asset would have been worth.

In other words: The bank will take the hit in bankruptcy, or take the hit when they foreclose. What's the difference?

Citi's Flip-Flop on Mortgage Cramdowns: A Really Bad Idea

Ah... so cram downs, which are the norm for commercial property owners under bankruptcy, should not be for the common folk.

No, no, no.... somebody had got to be the debt slave.