There are even some loans that can exceed 100 % of the LTV ratio, but most financial planners caution borrowers against this form of loan, as they come with a high possibility of foreclosure, and any interest on a balance that exceeds the home's value can not be tax - deductible. (investopedia.com)
Debt: Taking on debt raises risk: Interest charges increase your company's break - even level, there's the possibility of foreclosure if the lender can't be paid, and principal and interest payments soak up cash flow that could be used in stressful times. (entrepreneur.com)
And he argues that many investors probably won't appreciate the full risks that come with such a deal — like the possibility of foreclosure, a buyer's failure to properly maintain a home, or a market downturn. (inman.com)