Biggest Defaulters on Mortgages Are the Rich

[CA renter]

[quote=GH]I was doing some work in Rancho Santa Fe near the farms last week, and noticed one of those big repo trucks picking up a nice shiny 560 Mercedes from a very nice looking mansion.

Me thinks this one is hitting EVERYONE!

The “rich” can just go on credit cards longer than the “poor”

I have another customer who lost some 90% of his net worth since the crash in 2008. He apparently still has lots of money, but I suspect lots is now around $2 Million rather than 20…[/quote]

We know some people in RSF who said that they and a siginficant number of people they know in RSF are in financial trouble because they took on lots and lots and lots of debt that was collateralized against their houses.

I agree with you, GH. These people just had more resources to pull from when the SHTF; it doesn’t mean they aren’t being pulled down with the recession/deflation just like everyone else.

They can last longer, but everyone is waiting for the Inflation Fairy to bail them out. What if the Inflation Fairy doesn’t come? I think the distress will be overwhelming, and will be with us for many, many years to come.

[cyphire]

I unfortunately have a stake in an interesting fund which I did not realize I was in. We have an investment in a fund which has been buying mortgages for 40 cents on the dollar for mortgages over 1M dollars. The fund cannot pay out its investors even though it owns these mortgages at 40 cents on the dollar because of the illiquidity of this investment and is going Chapter 8 or something.

It’s a pretty scary market when you buy mortgages for .40 on the dollar and it’s not a good investment. I hope I eventually get my money back, but right now it’s 50-50. It’s less than 2% of my portfolio, but still I had no idea that I would still have investments in someone elses real estate, and when prices sink another 50% over then next 5 years, it will be a worse investment.

[cyphire]

I unfortunately have a stake in an interesting fund which I did not realize I was in. We have an investment in a fund which has been buying mortgages for 40 cents on the dollar for mortgages over 1M dollars. The fund cannot pay out its investors even though it owns these mortgages at 40 cents on the dollar because of the illiquidity of this investment and is going Chapter 8 or something.

It’s a pretty scary market when you buy mortgages for .40 on the dollar and it’s not a good investment. I hope I eventually get my money back, but right now it’s 50-50. It’s less than 2% of my portfolio, but still I had no idea that I would still have investments in someone elses real estate, and when prices sink another 50% over then next 5 years, it will be a worse investment.

[cyphire]

I unfortunately have a stake in an interesting fund which I did not realize I was in. We have an investment in a fund which has been buying mortgages for 40 cents on the dollar for mortgages over 1M dollars. The fund cannot pay out its investors even though it owns these mortgages at 40 cents on the dollar because of the illiquidity of this investment and is going Chapter 8 or something.

It’s a pretty scary market when you buy mortgages for .40 on the dollar and it’s not a good investment. I hope I eventually get my money back, but right now it’s 50-50. It’s less than 2% of my portfolio, but still I had no idea that I would still have investments in someone elses real estate, and when prices sink another 50% over then next 5 years, it will be a worse investment.

[cyphire]

I unfortunately have a stake in an interesting fund which I did not realize I was in. We have an investment in a fund which has been buying mortgages for 40 cents on the dollar for mortgages over 1M dollars. The fund cannot pay out its investors even though it owns these mortgages at 40 cents on the dollar because of the illiquidity of this investment and is going Chapter 8 or something.

It’s a pretty scary market when you buy mortgages for .40 on the dollar and it’s not a good investment. I hope I eventually get my money back, but right now it’s 50-50. It’s less than 2% of my portfolio, but still I had no idea that I would still have investments in someone elses real estate, and when prices sink another 50% over then next 5 years, it will be a worse investment.

[cyphire]

I unfortunately have a stake in an interesting fund which I did not realize I was in. We have an investment in a fund which has been buying mortgages for 40 cents on the dollar for mortgages over 1M dollars. The fund cannot pay out its investors even though it owns these mortgages at 40 cents on the dollar because of the illiquidity of this investment and is going Chapter 8 or something.

It’s a pretty scary market when you buy mortgages for .40 on the dollar and it’s not a good investment. I hope I eventually get my money back, but right now it’s 50-50. It’s less than 2% of my portfolio, but still I had no idea that I would still have investments in someone elses real estate, and when prices sink another 50% over then next 5 years, it will be a worse investment.

[Author]

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