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Old 28.06.2011, 07:15
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Phil_MCR Phil_MCR is offline
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Re: Swiss Mortgage Margin Calls

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I believe this happened in 1990 or so (a bit before my time anyway). When the property prices fell sharply, some banks then called in the difference to cover their exposure.

A couple of my friends were affected, needing to come up with some serious cash sharpish to top up the deposit payment.

A good reason not to stretch too far in today's bubble market. Or, if taking out a maximum loan makes sense at the moment, it might be a good idea to keep some of your investments fairly liquid - or at least keep those assets with the bank holding your mortgage so you are in a better position to negotiate.

But in any event, check the small print on your loan agreement. There should be something discussing this possibility.
do you have an idea how much they had to come up with? just trying to get an idea as to how much to provision for...
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