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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (490187)	6/23/2009 2:57:58 PM
From: i-node	Read Replies (1) \| Respond to of 1573688

>> What happens to the $200k loss? They'll go for a deficiency judgment against those who are now back in the projects after losing the houses they couldn't afford in the first place...

To: Jim McMannis who wrote (490187)	6/24/2009 3:47:48 PM
From: tejek	Respond to of 1573688

Lets say a bank eats $200k on a short sale or foreclosure. (Very common here). What happens to the $200k loss? You really think the banks are going to eat all that and stay solvent? Ask yourself who's backing them? Think, Fannie, Freddie...taxpayer, YOU, ME...Fowler etc.. Ta da. That's really a stretch. If the bank loses $200k on a short sale, they are still required to pay back the money they borrowed from the feds. And if they default, they go under and the FDIC pays out. [EOS]