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Updated about 9 years ago on . Most recent reply

User Stats

32
Posts
2
Votes
Dan G.
  • Fort Lauderdale, FL
2
Votes |
32
Posts

Mortgage risks

Dan G.
  • Fort Lauderdale, FL
Posted

Hello, 

My brother says he had a friend who used leverage to buy a bunch of houses, and after the housing market crashed in 2008, the banks demanded more cash from him due to the LTV being out of whack. He couldn't pay, so they foreclosed on the houses. Is this how it works? If so, what is it called when this happens? Does it have a name?

Thanks! 

Dan

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