[imagist]

Okay, it's fastest-growing, but is energy-conscious lending anywhere near the size of subprime mortgages?

Even if it is, it doesn't seem like as big a tragedy if the bank seizes your solar array as of they seize your home.

[nommm-nommm]

That's not how it work though.

These loans are added as a tax assessment on the property so the local government adds the premiums on the tax bill and collects with tax payments. Because its added as a tax assessment if you stop paying on your loan its the same as if you stopped paying taxes. Which means the city seizes your entire house.

This structure makes it so the PACE loan is ahead of even the mortgage holder in the creditors line.

That's even assuming its possible to seize your solar array, central air, insulation, or windows. These loans are for adding permanent features; permanent features of a house can't just be seized individually. They can't seize your solar array in the same way they can't seize your extra bathroom.

If that's not bad enough these loans are being issued without a credit or income check. They are being issued based on the amount of equity the borrower has in their property without regards to financial health or ability to repay and without the same lending disclosures required by other loans.

[imagist]

Ah, yeah. That's problematic.

[crazypyro]

The article states PACE loans go in front of homeowner mortgages, so they can take your home as collateral if you can't pay your PACE loan payments.