For all to know

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Knot Waiting

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Re: For all to know

All I know is that if I were to lock myself to a loan that I knew full well I wouldnt be able to pay off nobody would come to my rescue.. Yet we are now forced to bear the brunt everyone elses mistakes? Grr, maybe thats why my first thread on this topic got locked, lol.
 

i386

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Re: For all to know

Here's my theory (and I don't know much about investments and such)...

Lenders must assess risk before granting a loan.

The safe thing is to only loan to people with great credit.

If you want to loan more (and profit more) the lender can find a way to mitigate those risks.

One way to do that is go ahead and lend to people with risky credit, and keep an eye on them. If things start to get dicey, they sell the mortgage to another company.

These companies take on these risky mortgages because they're betting they can rely on the option to foreclose, then sell the property for profit.

This is actually profitable until the real estate market turns bad and they can't sell the property.

So these folks end up with a pile of real estate they can't make any money on.

The banks run out of places to sell the mortgages to because they're all in trouble.

This puts the banks in trouble which puts us all up **** creek.
 

Mark42

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Re: For all to know

The bank that held the mortgage on my nephiews condo went broke over a year ago. He has been trying to find out who holds the mortgage on his house now. No one has ever contacted him saying payments are due. No one he contacted knows anything about his mortgage.

He pays his taxes directly, so the town has no problem with him.

I advised him to open a savings account and deposit the mortgage payment in the savings account just like he was making a payment to the bank. I figure sooner or later someone will come calling.

For now, he is living mortgage free.
 

Tail_Gunner

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Re: For all to know

The bank that held the mortgage on my nephiews condo went broke over a year ago. He has been trying to find out who holds the mortgage on his house now. No one has ever contacted him saying payments are due. No one he contacted knows anything about his mortgage.

He pays his taxes directly, so the town has no problem with him.

I advised him to open a savings account and deposit the mortgage payment in the savings account just like he was making a payment to the bank. I figure sooner or later someone will come calling.

For now, he is living mortgage free.


Very sound advice Mark...Perhap's a certified letter asking for direction's for the current loan payment's
 

JRJ

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Re: For all to know

I feel like I gave today. Largest one day loss I've ever had at the Dow. Gotta love the action . lol
 

Uraijit

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Re: For all to know

I feel like I gave today. Largest one day loss I've ever had at the Dow. Gotta love the action . lol

Don't sweat it, JB's got ya covered. I'm sure your check is in the mail. :rolleyes:
 

Philthyphil

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Re: For all to know

i386 is on track in this. One thing he has not mentioned, nor has anyone else. is ABC paper. Thats asset backed corporate paper. The financial institutions rolled the sub-prime mortgages into this type of investment vehicle along with other loans. They got rating services to give this paper triple A ratings and then sold it all over the world. Billions of dollars of it, bought by banks, pension funds, goverments and small investors all over the world. Billions of dollars of worthless paper that US financial institutions sold to unsuspecting investors with triple A ratings. That means that no one thought there was a risk involved, did not know the ABC paper was full of sub-prime bad loans. In other words they were mislead and lied to by institutions they trusted. It's a Ponzi scheme gone bad on a global level. As Gordon Ramsey would say, we are all in the s**t now. No it's not the end of the world but it is a shift. We all hope you guys can get it together because the world needs a stable american economy. Please dont let politics get involved here, do what you have to and help stablize this now. As Red Green would say were all pulling for you now.
 
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