Investors (suckers) bought them. Buyer beware. Bet they won't do that again. It would have been in immoral act to let them keep their money, they were lucky to get together with it in the first place.
Whoever owns the mortgages needs to assess them. In a few cases re-structuring might be the best way to mitigate the loss.
Generally they just need to bite the bullet, take the house in due course, and sell it for whatever they can get.
“The mortgage banks don’t hold the loans anymore.
Investors (suckers) bought them. Buyer beware. Bet they won’t do that again. It would have been in immoral act to let them keep their money, they were lucky to get together with it in the first place.
Whoever owns the mortgages needs to assess them. In a few cases re-structuring might be the best way to mitigate the loss.
Generally they just need to bite the bullet, take the house in due course, and sell it for whatever they can get.”
Those CDO’s have not really unwound yet. When they do then it is going to get really bad.
Yeah, the banks do own them. They were used as collateral for loans by hedge funds and other financial institutions.