Quote:
Originally Posted by Lefazz  There WOULD be buyers if sold cheap enough. Sell a 300K house for 150K or whatever the market can bear. Sure it's a loss, but it's better than "0" which is what they are getting by sitting on it. |
It just isn't so simple. You have to realize that much of these banks are leveraged and have themselves borrowed money to give out these mortgages.
Another way to put it...lets say you took out a 500k mortgage on a house and now the value of the house was slashed to 250k. You could sell the house and recoup 250k but you still owe 500k to the bank.
