Foreclosure Shock: High LTV Saves Your Wallet! #shorts

Added: 2026-06-02

[00:00:00]Let's say you have a a $100 project. If it's a 50% LTV, there's 50 million of money from the bank and 50 million from investors. Let's assume you're the only investor. You had to put 50 million cash in. Well, you just lost $50 million. But if it's an 80% mortgage, so 80 million came from the bank, 20 million came from the investor, there's the you know, the worst possible scenario, which is a foreclosure, you only lost $20 million.

[00:00:27]So, in the worst-case scenario where you're losing money, you want to lose the bank's money, not your own money. As as deals are having foreclosures and there's capital loss, there's more capital loss the lower the LTV was >> Right. in those original loans.

[00:00:41]>> There is more capital loss the lower the LTV.