[quote=cv2][quote=SD Realtor]
All I know is, if I am a bean counter at a lender, and I can dump that property off so some investor at an inflated price instead of going through the legal hassle of foreclosure, it is a no brainer. Even if I have to sit on the property for months, so what if it is not performing. I get to dump it. No sale, no broker, no commission, no market, no foreclosure proceeding, no trustee sale. The best thing is that everything is backed by our tax dollars. Isn’t that sweet?
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Hi SDR, I am missing something here. How can they dump it and to who? The only thing I can think of is that banks can use those loans as col laterals to get cash from FED. Is this what you are referring to?
Thanks!
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I won’t attempt to steal SDR’s thunder, but I think PPIP is a taste of what’s to come. If banks can’t sell REOs at inflated prices on the open market, then govt subsidies will be created to allow them to sell to some investors at inflated prices. It’s the PPIP model for MBSs translated to REOs.
