Rich but no money
It is ironical that many rich people have no money.
When a person has the means to buy a house worth S20 millions, you will classify him as a rich person.
The bank thinks this person is a rich person too. After all, it has to lend about $16 millions to finance the purchase of this house.
Why is this person rich but has no money?
When the housing market and stock market crash, and he needs to sell the house to release the capital, he cannot find a buyer.
As it is, he has no money to service the loan, and the bank seizes it and auctions off the house in order to get the money back.
The auction price may be enough for the bank to recover the mortgage, and probably not a single cent will go to the original owner.
Image Credit » https://pixabay.com/en/woburn-building-house-historic-835913/ by WikimediaImages