Cheating bank for a stock investment.

liaoyu03 · Joined: 09 Sep 2007 Posts: 213 9.09 Dollars($)

In our country, people mortgage their property including their house to purchase the stocks. but loaning for stocks investment is not allowed by the banks or other mortgage companies. otherwise, the the loan will be sequestrated.
Many citizens need pretty penny to the stock market, so they deceive the banks and promises they will use the loan to buy some thing for example buying a car.
I think the is not advisable action. stocks investment is unstable and great venture. if you are to the bad. you will get into debt.
Are there some people use the loans for a stock investment? dose your countriy allow you to mortgage your property and use the loan to the stock investment?

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.80 Dollars($)

Hello Liaoyu,

You mean if someone is unable to pay off the mortgage just because he didn't get much profit or may be there's a loss in stocks, so he'll lose the home. Right? yup, that's quite true. then he has to pay off the loan on his own if he wants to save his home.

Guest 0.10 Dollars($)

Yeah, people do take out mortgages to buy stocks. Now, if the there is a marginal difference between the amount of mortgage loan and the stock purchase price, then if the market crashes, you are nowhere. In this case, you may have to sell the stocks at whatever price you can to pay off the loan.

livinginnky · Posted: Fri Sep 21, 2007 3:35 pm Post subject:

You can do a Cash Out refi and use the money for anything you want. However not all lenders look at cash out as the same thing. Some say paying of debts is cash. Others will right you a check for up to a certain loan to value.

All times are GMT - 7 Hours

Page 1 of 1