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In both of those instances, the properties can be employed as collateral, which means they may be seized really should both borrower default. To recoup charges in the event the borrowers default, the fiscal institutions can try and offer the residences and make use of the sale price to pay down the linked financial debt.

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The "time value of money" refers to The point that a greenback in hand these days is really worth in excess of a greenback promised at some foreseeable future time.

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