Economic-wise only, because a bank or other institution doesn't need 100% of its loans to be backed in cash (paid for in this case) since one assumes the assets backing the loans have some value. The mortgagees, however, need 100% of the loan value in order to pay it off.
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timeasmymeasure
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Date: 2008-09-26 04:57 am (UTC)Therefore, cheaper to shore up the mortgagor.