Why would a lender offer a home loan to a debtor at high chance of standard? ItΠ²Π‚β„’s numbers game.

Why would a lender offer a home loan to a debtor at high chance of standard? ItΠ²Π‚β„’s numbers game.

The lending company knows from experience that lots of borrowers will likely not default. Despite the fact that there are many more defaulters on dangerous loans than old-fashioned people, this price is offset by the greater interest levels charged to all or any these borrowers, and the lending company understands it can recover cash by foreclosing from the defaultersΠ²Π‚β„’ houses. Continue reading “Why would a lender offer a home loan to a debtor at high chance of standard? ItΠ²Π‚β„’s numbers game.”