Quote:
Originally Posted by urbancore
How does that work exactly? If you owe a bank $1m on a property worth $100m, you default, bank takes control and sells it for $50, do they cut you a check for $49m?
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Nope. It's all the bank's.
If it's obvious to me, certainly it should be obvious to these lending institutions that WCG has a business model based on playing fast and loose with credit. Like REALLY fast and loose. Like under-investigation-by-the-FBI fast and loose. It's surprising to me that they find it to be a better bet to work out his loan details than to just foreclose and sell the property in question into this white hot market.
I'm no banker so may not have a full grasp of the complexity here. Maybe there're too many counterparties, maybe the minority investors have a really big voice. But WCG seems clearly to be a bad bet, and getting worse. If I was a bank I'd get out, and fast.