Posted on: 01st Jun, 2004 12:53 am
Credit related expenses are the sum of lost property expenses plus the arrangement made for those losses.
For Example, Sam purchased a farm house for $500,000 in Scotland in the year 2001. He also took a loan of $100,000 in the same year from a bank. Two years later he unfortunately lost his property, so money invested in purchasing a house plus amount of loan taken i.e. $500,000 + $100,000 = $600,000 are the total credit related expenses of Sam.
For Example, Sam purchased a farm house for $500,000 in Scotland in the year 2001. He also took a loan of $100,000 in the same year from a bank. Two years later he unfortunately lost his property, so money invested in purchasing a house plus amount of loan taken i.e. $500,000 + $100,000 = $600,000 are the total credit related expenses of Sam.
The term credit related expenses is also used in foreclosure proceedings so as to mean the sum of all the expenses related to foreclosure of the property and the provision for any losses (like, charge offs) which may occur in such foreclosure proceeding.