Re:Some young people are buying houses with friends
by ses1984 on Wednesday March 06, 2019 @09:02AM
(#19318911)
I feel like the time scales don't matter as much as the aggregate repossessions. If the aggregate is high, it's worse for lenders. Reposessing a home is not good for the lender if they can't sell it on the open market for a price close to the previous price. If repossessions go up, demand drops, and the market collapses.
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Re:Some young people are buying houses with friends
by have_faith on Wednesday March 06, 2019 @09:05AM
(#19318937)
Good point. Is this percentage a known number or is there a name for the threshold in the lingo? Like a number they would actually want repossessions to be maintained at as it maintains gaining property while the market is effected as little as possible?
Re:Some young people are buying houses with friends
by pmorici on Wednesday March 06, 2019 @09:06AM
(#19318941)
Don't they only need to sell it for the amount of outstanding debt? That is in part why standard loans require 20% down
Re:Some young people are buying houses with friends
by isostatic on Wednesday March 06, 2019 @09:24AM
(#19319095)
Plus the costs of selling it (typically reposessed houses have all sorts of issues, from damage to eviction costs to disgruntled ex-tennents)
They'll likely sell at an auction for cash too. With two houses otherwise identical, one being sold normally, one as a reposession, you'd go for the normal one. How much less would you pay for a repossession which runs a risk of the previous owners coming back to haunt you?