It is negative equity. The value is no longer enough to securitize
the amount of the debt. Mortgages are secured by real property then
bundled together and sold as mortgage backed securities. When
property values drop then the securities lose value. NEDAP has a
good chart on securitization on their web site
http://www.nedap.org/resources/documents/onepagesecuritization2000p.pd
f
I didn't even mention in my first post all of the AP residents who
may face losing their homes. This applies to both owners and
tenants. How many are out there in loans they can no longer pay?
How many are tenants of landlords who tapped their equity or
qualified under relaxed underwriting guidelines? I have no idea.
I wondered as I listened to the congressional hearings today why they
aren't bailing out the homeowners? Wouldn't this secure the equity?
If only my loss mitigation counselors had better tools and
options!!! I don't even need a huge bailout. All I need is some
sort of forgivable forbearance for some of the people in over their
head. Well maybe once the rich guys start to find paying their
mortgages impossible?
------------------------------------
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/AsburyPark/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/AsburyPark/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:[EMAIL PROTECTED]
mailto:[EMAIL PROTECTED]
<*> To unsubscribe from this group, send an email to:
[EMAIL PROTECTED]
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
