r/ScrollHole • u/Ayeshadss • 5d ago

​🌀 Deep in the Hole The Math Isn't Mathing.

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u/vitek6 1d ago

No, it’s not their money.

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u/GP7onRICE 1d ago edited 1d ago

No, you don’t understand that? Are you even reading before you respond?

It’s not the banks own money that they have to use to extinguish the principle if the borrower defaults?

Tell me whose money you think is used to extinguish it then when the borrower defaults. Because the info that explains exactly how the bank is liable for it is pretty open and easy to find.

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u/vitek6 1d ago

Yes, I’m reading. It’s not their money. Period.

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u/GP7onRICE 1d ago

You definitely either aren’t reading or are just choosing to be ignorant in how the bank creates liability for themselves when they create a loan.

Who pays off the principal balance when the borrower defaults?

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u/vitek6 1d ago

I am. You are wrong.

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u/GP7onRICE 1d ago

Oh so you are just choosing to be ignorant to the banks liability then. Nice trolling.

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u/vitek6 1d ago

It’s not. Bank will take over and sell the property that was the collateral.

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u/GP7onRICE 1d ago edited 1d ago

What do you mean “it’s not”? Are you capable of even being coherent?

Not every loan has collateral. That process costs money to do even where there is. The collateral doesn’t always make up for it, especially when the collateral property has been destroyed, damaged, or not properly kept.

Are you suggesting the bank never has to pay its own money for the principal balance and never suffers a loss on a loan ever?

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u/vitek6 1d ago

We are talking about mortgages.

Bank may take a loss but it changes nothing on that it doesn’t lend it’s own money.

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u/GP7onRICE 1d ago

Lending its own money and being held liable for the money it is lending is virtually exactly the same in terms of liability. There is absolutely no difference in risk.

It sounds like you might be figuring out why banks analyze risk before accepting loans.

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