I wouldn’t be surprised if folks/company with cash start offering cash to holders of those IOUs in exchange for those IOUs being purchased at a significant discount.
For instance, suppose J6p has an IOU for $2000. Assuming it would be transferrable, why not offer cash-strapped J6P $1300 cash in exchange for the IOU? While it’s seems like a shitty thing to do, it’s really a win-win proposition for j6p….J6p gets to continue to live paycheck to paycheck, and the person offering the cash gets a premium for taking on the risk in case CA defaults and those IOUs aren’t redeemable
I don’t see this doom and gloom…In fact, as shitty as it sounds, I think it creates opportunity.[/quote]
flu – are you related to Mr. Potter?[/quote]
Don’t get it. Maybe? What’s the reference to Potter?
*edit*… Never mind. I get it.
I don’t know. How is this different from folks wanting to buy a home at 50% off from someone who bought at a peak andd subsequently got foreclosed on? Spare me the ethics discussions…The difference is that when you buy an REO, we don’t see any of real people suffering, because conveniently you’re only dealing with the banks in the aftermath….We only want to believe these folks only got into this mess because they lied on their loan applicants, committed fraud, trashed places after they were forclosed on, so in some essence it’s ok that their poor decisions translate into opportunity for us to purchase at a lower price. It’s just peachy convenient to think that they weren’t any real people who otherwise suffered and are pretty screwed now. Last time i checked, plenty of people on this board were/are giddy if they’re able to pick up an REO at 50% off. Oh the hypocrisy. Besides it only makes sense to do this with j6p businesses which hold large IOU’s. Doing these with individuals at a small scale probably doesn’t work out anyway.
