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Updated almost 9 years ago, 01/08/2016
Mortgage risks
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