BoatBanter.com - View Single Post - There's just nothing quite like capitalism

HK

BAR wrote:
wrote:
On Wed, 30 Jan 2008 16:20:56 -0500, HK wrote:

Lots of those upside down loans, at least out here, were
speculators. Counting on a 20% / year growth. A few out here are
stuck with 5+ houses.

Good. They ought to be stuck, but good.

the problem is that a lot of them really don't have much money in the
game and they just walked away leaving that long list of banks holding
useless paper and a house they can't sell. The 60 minutes piece
pointed out these loans were consolidated so many times it is hard to
figure out exactly who actually does own any given house in
forclosure. As I said before, big builders were getting huge blocks of
money from fund operators and they lent it out through their in house
mortgage company. The fund holds all the paper but the individual
investors have a hard time sorting them out when the fund fails.

There was a recent foreclosure court case in Ohio, I believe, that was
dismissed because the bond/fund holders suing for foreclosure couldn't
prove that they owned the mortgages.

I read about that one, it was worth a giggle. There's little question
the mortgage business needs to be regulated as it once was.