firstly what i came to know is there is no middle men involved,
secondly bank where giving loans to customer with the intention that even if there is a default they could take the property and resell as the value of the property would rise(asset bubble). when the was more defaulters the supply of the property increase with very less buyers. this futher decreased the asset value.now those banks are in a deep shit i would say
RE:add on ... zaheer hashim
by Abhay T on Feb 06, 2008 05:22 PM Permalink
There is a middle man. But they are not exactly like real individuals. They are other kind of banks ( like Northern Rock) that heavily depend on credit from other bigger Banks! e.g HSBC may grant a loan to Norther Rock considering its excellent credit record and Northern rock sells mortgages to customers.
