Right. The true value is the net present value of the anticipated income from the loans, which takes into account both the good payers who will more than likely pay in full and those with poor credit and unlikely to pay and will have to be written off - and the value of some of those holdings will be close to zero once you figure in the management fees, cleanup, and taxes. That is why some of the banks are stopping the foreclosures.
So the question is how do we know what percentage is “bad” (given the fact that 0 is screwing things up more each day which translates into more unemployed people)and HOW MUCH these properties will eventually be worth.
Whatever happens, it is beyond our control anyway.