It really doesn’t require much thinking – it only requires listening to what mortgage professionals are saying
Umm, isn’t that the same guys that started this mess?
but we are talking about minimizing the carnage by way of loan reworks
Yeah, rework. Read- refinance. They’ll put you in a new secure advantage loan if you have some equity left and run the clock another two years.
In the end, the math is still the same, they’re sitting with a $600,000 loan and holders want a real rate of return. If they have to take 1/2 the return, they’ll take half the return, right now, in full. They aren’t going take half the return for the next 30 years.
In the end, the people can’t afford LIBOR, let alone any margin. That’s a fundamental problem they won’t be able to address without a forebearance of the loan amount. Increase risk requires increased return, it’s a market fundamental.
They aren’t going to recast the Casey Serin’s, Casey and the clowns like him probably own half the trouble real estate around.
