>Most people ( who aren't millionaires ) can't afford to buy a house outright, particularly these days. So they must go to a lender, typically a bank, to take out a mortgage.
Most millionaires who are interested in buying the kind of house associated with millionaires also need to take out a loan to afford their mansion.
>So they must go to a lender, typically a bank, to take out a mortgage.
Well, any business that offers mortgages will do, but yes.
>The bank, being the shady business that it is, takes that loan agreement that you just made, and sells it ( your debt) to anyone that'll take it ( This just happens to mostly be rich fuckers from china) to make more money on the loan.
According to the terms of your loan, creditors may or may not be able to sell your debt to third parties. Those third parties don't have any more power over your property than the bank did, though. Furthermore, even if you're in the habit of signing your name on papers you never read, home-owner protections are very strong in the United States. You basically need to be completely insolvent to be at any risk of losing your home, and even then, your creditor will still probably not be able to seize it. Or your vehicle, if your vehicle is your means of getting to work.
>Now the owner of the debt owed, owns the object that loan was taken out for. Which means the Chinese man now owns your home, and the property it is on.
Again: if your creditor sells your debt to another creditor, the new creditor has actually as much power over your debt as the original creditor.
>In turn, the bank will lie about this, because it's kind of illegal to do.
No. Creditors selling your debt to purchasers is entirely legal. If you own a 50% stake in a lemonade stand and I own the other 50% stake, there is no inherent legal impediment to me selling my own stake to someone else.
>I think I understand just fine how it works.
Apparently not.