Amortization, negative (negative amortization)
In the case of real estate loans, the fact that the monthly payments made by the borrowers themselves do not cover the interest due. In the case of construction loans to financially weak borrowers („house builders“, home-builders), the increasing debt burden each month thus easily leads to ruin and foreclosure.
(compulsory auction). – See deferment period, balloon loan, loan-to-value, first-loss clause, Home Mortgage Disclosure Act, real estate prices, mortgage equity withdrawal, ninja loans, real estate loan, subprime crisis, home ownership, interest deferment, twenty-two-eight loan.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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