One possibility…look at the thread titled “Investing in Non Performing Loans (NPNs)” and you might find out what happened.
It’s pretty much a foregone conclusion that second mortgages taken out during the peak are basically worth zero$$. IMHO, they are selling them off for maybe 10 cents on the dollar, and the new owners are re-working the mortgages in a way that is favorable to the note holders and to the borrowers.
It could also be that the banks are working directly with the borrowers, because they might recoup more than they would if they sold them to third parties.
I don’t like it either, but there it is. Lessons learned by all around.
