The loan conditions of the state housing finance institutions already enclose
the collateral aspect, since they always finance complete solutions which include
the acquisition or long-term lease of a plot of land. In case of insolvency of a
customer, another applicant simply takes over his place and assumes the corresponding
rights and obligations. But again, this complete solution has the disadvantage
of an increased loan amount and thereby elevated financial load on the
debtor. This again explains why the vast majority of all state agencies do not
reach their real target group of low-income families, but overwhelmingly the
middle and lower-middle classes.’