Equity Loans as Next Round in Credit Crisis

[Ex-SD]

“Lenders and investors who hold home equity loans are not giving up easily, however. Instead, they are opposing short sales. And some banks holding second liens are also opposing refinancings for first mortgages, a little-used power they have under the law, in an effort to force borrowers to pay down their loans.”

Here’s the story: http://www.nytimes.com/2008/03/27/business/27loan.html?_r=1&hp&oref=slogin

[DaCounselor]

This game of chicken is going to be played over and over again. I expect a growing secondary market for recourse Heloc judgments. I’m curious what the typical cents-on-the-dollar purchase prices will be.

I would not be surprised to also see non-recourse 2nds/Helocs play hardball with borrowers at the outset, but at the end of the day these lenders are going to have to cave. Many are looking at total losses.

[DaCounselor]

This game of chicken is going to be played over and over again. I expect a growing secondary market for recourse Heloc judgments. I’m curious what the typical cents-on-the-dollar purchase prices will be.

I would not be surprised to also see non-recourse 2nds/Helocs play hardball with borrowers at the outset, but at the end of the day these lenders are going to have to cave. Many are looking at total losses.

[DaCounselor]

This game of chicken is going to be played over and over again. I expect a growing secondary market for recourse Heloc judgments. I’m curious what the typical cents-on-the-dollar purchase prices will be.

I would not be surprised to also see non-recourse 2nds/Helocs play hardball with borrowers at the outset, but at the end of the day these lenders are going to have to cave. Many are looking at total losses.

[DaCounselor]

This game of chicken is going to be played over and over again. I expect a growing secondary market for recourse Heloc judgments. I’m curious what the typical cents-on-the-dollar purchase prices will be.

I would not be surprised to also see non-recourse 2nds/Helocs play hardball with borrowers at the outset, but at the end of the day these lenders are going to have to cave. Many are looking at total losses.

[DaCounselor]

This game of chicken is going to be played over and over again. I expect a growing secondary market for recourse Heloc judgments. I’m curious what the typical cents-on-the-dollar purchase prices will be.

I would not be surprised to also see non-recourse 2nds/Helocs play hardball with borrowers at the outset, but at the end of the day these lenders are going to have to cave. Many are looking at total losses.

[Author]

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