Glossary entry

English term or phrase:

pick up the drag

English answer:

pay for the difference (deficit)

Added to glossary by Michael Powers (PhD)
Jul 13, 2009 18:41
15 yrs ago
1 viewer *
English term

pick up the drag

English Bus/Financial Business/Commerce (general)
Financing options are often the key to everything. If you did a deal with one of the relofirms, and I know of a fair amount because of my friends, they'll usually come in, and they'll fix aprice, and you pay for the service. But they fix a price. If your house doesn't sell for that in 90 daysor less, they agree to buy it at a price, a factor of that price, like 95 or 97 percent. And the company,who is the sponsor, picks up whatever drag there is in the situation.
Change log

Jul 16, 2009 11:20: Michael Powers (PhD) Created KOG entry

Jul 16, 2009 11:21: Michael Powers (PhD) changed "Field" from "Art/Literary" to "Bus/Financial" , "Field (specific)" from "Other" to "Business/Commerce (general)"

Responses

+2
3 mins
Selected

pay for the difference (deficit)

I believe this is what ie means. In other words, the sponsor pays for the difference in the hypothetical of 95 or 97% to make it 100%.

Mike :)

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Note added at 2 days16 hrs (2009-07-16 11:20:19 GMT) Post-grading
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You're welcome.
Peer comment(s):

agree Irina Schwab : Totally agree, this is exactly how I "explained" or "re-phrased" the context when Ionutz asked for this expression to be translated in another language
5 hrs
Was that into Romanian? I almost went to Transylvania on a Fullbright many years ago. Mike :)
agree kmtext
12 hrs
Thank you, kmtext - Mike :)
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4 KudoZ points awarded for this answer. Comment: "Thanks alot!"
13 mins

absorbs the difference

drag=sticking point for the deal
Example sentence:

In case the proceeds are not sufficient to pay off the loan, the lender absorbs the difference.

If the proceeds are not enough to pay off the loan, then the bank (or insurance which the bank has on the loan) absorbs the difference.

Note from asker:
Thanks alot!
Something went wrong...
14 hrs

cover the delay/bridge the gap

I read this as being about the time delay between the reloc company buying the house and reselling it. During that time their money is tied up in the property and they take the risk that the house might not sell, either at all or at their valuation price. They are probably incurring loan charges etc. They make their money from their initial fee for valuation + their 3% to 5% difference between the price they buy for and the price they expect to sell for (their valuation) + any extra profit if they are able to sell at a higher price. Perhaps they pitch their valuation deliberately low to increase the chances of the property selling within the 90 days and, in the event that it doesn't, to also increase their chances of selling at a higher price.
Note from asker:
Thanks alot!
Something went wrong...
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