@HarryBarry54680@TripleNetInvest The issue is it's all cash typically with no due diligence period. Hard to do on a commercial deal. On a resi deal, who cares it's a house.
@HarryBarry54680@TripleNetInvest Only in resi deals do bidders tend to show up at auction. The vast majority of the time the lender acquires the asset as a credit bid. Their bid price is irrelevant. What matters is the price in which the lender sells it to a third party.
@aryal1994 To their debt, they have a deficiency judgment, in which they can pursue the sponsors personally, if it has recourse. So whenever a lender buys a property, it hasn't yet sold to a third party. The lender could sell the property for any amount - even more than the debt.
@aryal1994 In most commercial foreclosures auctions, the first mortgage holder simply bids their debt. There are reasons they may start their bid at a fraction of the debt, which could attract bidders. If they "buy" the property at a significant discount...
@sharpcutco@MichiganNation2 Absurd to say that our system isn't much better than Russia's or Iran's. Only someone who really hates America would say that.
@MichiganNation2 Israel is the only democracy in the region. Arabs in Israel have more freedom than in any other middle eastern country. Is your model Saudi Arabia? What's your favorite Islamic theocracy? Iran?