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Anonymous Posted 12 years ago
Vocabulary
Reduction of the lender's risk
Hi.
"A down payment in this case reduces the lender's risk to less than the value of the collateral, making it more likely that the lender will recover the full amount in the event of default." [From the Wikipedia.]
Does the reduction of the lender's risk = the value of the collateral - a down payment ?
Thank you.
"A down payment in this case reduces the lender's risk to less than the value of the collateral, making it more likely that the lender will recover the full amount in the event of default." [From the Wikipedia.]
Does the reduction of the lender's risk = the value of the collateral - a down payment ?
Thank you.
Top answer
Anonymous Does the reduction of the lender's risk = the value of the collateral - a down payment ? The reduction of the lender's risk = the amount of the down payment. Both of those are less than the value of the collateral
- Anonymous Does the reduction of the lender's risk = the value of the collateral - a down payment ?
- The reduction of the lender's risk = the amount of the down payment.
- Both of those are less than the value of the collateral
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3 Answers
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AnonymousDoes the reduction of the lender's risk = the value of the collateral - a down payment ?The reduction of the lender's risk = the amount of the down payment.
Both of those are less than the value of the collateral
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Thank you, MM, for your useful reply.
Yes, You've made me rethink it. Though the collateral may be, sometimes, less than the down payment as it was during the credit-crunch crisis in 2008. As I understand it the property (a collateral), e.g. a house, might have been valued even zero as there was no demand, whatsoever, for that property then. In such a case, indeed the risk is reduced exac
Yes, You've made me rethink it. Though the collateral may be, sometimes, less than the down payment as it was during the credit-crunch crisis in 2008. As I understand it the property (a collateral), e.g. a house, might have been valued even zero as there was no demand, whatsoever, for that property then. In such a case, indeed the risk is reduced exac
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Anonymousthat no monthly installments and interest haven't been paid.Edited: the that no monthly installments and interest haven't been paid should have been without double negation and written like that: that no monthly installments and interest have been paid.
P.S. Sorry.
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