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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Lizzie Tudor who wrote (154195)10/5/2008 11:36:40 AM
From: JBTFDRead Replies (1) of 306849
 
"Take the total percentages of each of these, and devalue ALL subprime to zero, all loan to value over 80% to zero and all maturity over 360 months to zero. I don't do anything with the credit scores, I don't think those matter. If you can find any with state locations of these with midwest states or MI or some others where real estate tends to lag, devalue those to zero."

I don't understand how one can reasonably say the value of all of these is zero. I think the people buying these are looking at this part of the portfolio as buying the real estate, which is certainly not at a value of zero, even if one considers the costs to get back the title.
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