Modest Clarification: When I talk about my thoughts on Lenders "not getting anything" (under my ideas for fixing Virginia lending laws on my website), I mean if the total sale amount is for less than the 85% return to the borrower. For instance, if borrower pays 100K over ten years on a 300K loan and can't keep paying, home goes up for sale. If all they can get is 65K (through normal sale or otherwise), borrower is entitled to 85K and walks with entire amount of 65K, lender gets nothing. Both parties agree to final sale amount (lender and borrower). Inversely, if house appreciates and sells for 450K, borrower takes full 85K and lender walks with rest.
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Disclaimer - Nothing in this video is legal advice or forms an attorney client relationship. The views expressed herein do not necessarily represent the views of any organization to which I belong.
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