[musicgizzo]

Ok so the bank lends you a large amount of what your home is worth and you need to pay it back. Depending if it's subprime/ARM or prime, interest will be different.How much money is lended and how often?Since your interest payment is calculated from the principal then why is there a distinction between foreclosures from not being able to pay the principal and foreclosures from not being able to pay the interest.Isn't it the same thing?? Are interest payments made separate from the principal? Also, I am just asuming this.. but foreclosures hurt banks because of the large amount of money that was lent and was use up to never be repayed. So even if the bank reposes the home and successfully sells it, it will maybe only be getting 30% of it's worth back? Right? I know, these may be dumb questions..