What is particularly interesting at this point...is even a high ranking official ...head of the US Treasury....has participated in...and has millions in his personal bank account...generated by pushing and supporting the sub prime business... Most of these obligations are held by organizations whose heads based a lot of their judgements based on the standard ratings scales ...and trust in the firms with which they did business.... At this point...these entities holding these paper obligations...are left holding the bag...but one has to believe that the legal suits will be coming in droves...and those that are responsible for forming and pushing the sub prime businesses....are going to have to answer a lot of questions ...somewhere... before a US Judge... This game has not even started...what a mess...
Oh yes, I think this is bigger than asbestos. Those pensions and other investors will hire the trial lawyers to get the money back - just like the states did to recover their medicare/medicaid losses from the cig makers. Few months ago somebody sent me a ratings agency downgrade list - might have been by S & P - it was 14 pages long single spaced list of ABS/MBS @ 500M per line which I think was the original security face value. Big money there if they've lost half their value or whatever. Throw in 30-40% contingent fees on somewhere between 250B to 1T... . I know guys that kind of pay will attract... .
I am a Florida Realtor and would like to ask anyone out there to clarify who holds these mortgages for me. I was told that once they are packaged up and shipped off the banks who initiated the mortgage no longer have anything to do with them. The investors like the brokerage firms are the ones who own them and have their trust companies collect the payments? So when offers come in on properties that are in the forclosure process, the investors who bought the mortgage from the bank are the ones who decide if they will take less than the balance of the morgtage? And this process could take many many months. If anyone has any info on the whole process please help me out, the more I know the better. Thanks
Forget the investors - not relevant. If it's in forclosure call the lawyer listed on any pleading. If it is not in forclosure, call the servicer's customer sevice number on the guy's monthly mortgage statement. One of the above, as the case may be, is the go between Hard to say what authority they'll have to make some kind of concession or short sale if that's what you're thinking. Remember, if there are junior mortgages or other liens, in many if not all states you have to go through foreclosure to wipe them out. Good luck. Lemme know when you have a decent condo for me at 85K
I was smart enough to short builders so business is ok, good thing I know how to trade. However I do have many nice condos in the Jax Beach/Ponte Vedra Area incase anyone wants a deal in the next near. I do think that these builders will be having going out of business sales in the year to come. They just have too much inventory, at jumbo prices, with no demand. Buyers with Euros/Pounds will be here in the near future, I market to them.
I must add the media coverage doesnt help any of us trying to sell houses in FL and in CA. I think prices have to come back to the 2002 levels, before lenders got carried away with giving out money to anyone who walked in and asked for it. I read FL was the worst when it came to mortgage fraud. Anyone else have ideas to what they think prices should be at???