this post was submitted on 21 Jul 2025
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[–] Pieisawesome@lemmy.dbzer0.com 6 points 5 days ago

This is the key point that the banks are concerned with.

If the house is worth $100 and you owe the government $90, the bank can only recoup $10.

It’s a terrible idea to fund this loan because you likely will only get Pennies back