[lbo-talk] origins of the housing boom

[Duane Eareckson]

Jordan Hayes wrote:
> shag writes:
>
>> if that buyer says, here, let me give you 20k less than you
>> paid for it, how is there any equity in that house?
>
> Ask Joanna: she says banks don't have skin in the game :-)

To shag: There wouldn't be.
To Jordan: With the seller's loss of downpayment equity and possible 
continuing obligations after a short sale, the banks wouldn't have 20K of 
"skin in the game". And what skin in the game they do have doesn't mean they 
won't enjoy a little overassessment con played on a potential buyer.