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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (6085)	7/20/2001 12:19:21 AM
From: Ilaine	Read Replies (1) \| Respond to of 74559

My recollection is that mortgages were for even shorter periods than 5 years - I think it was 3. Yes, you're absolutely right, a loss of liquidity can cause a loss of illiquid real wealth, because you can't make the payments on a loan. Probably then as now, the banker would rather discount the loan than drive the borrower into foreclosure. But, nevertheless, there were counties where 100% of farmland went to foreclosure.