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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (51483)	4/5/2006 7:33:21 PM
From: deeno	Read Replies (1) \| Respond to of 306849

I was responding to this; "The bank doesn't get shafted, the person who bought the CMO does" with "depends on who issued the CMO, whether it was overcollateralized or not, etc.... So it may be the packager that takes the loss by either making it good or taking a discount on the orginal package" Not weighing in on the morality vs fraud. It seemed that you wanted to make the point that the investor (little old ladies I beleive you said) were being taken advantage of. I was just pointing out that isnt nessarialy true. "As It always amazes me that people who wouldn't steal a piece of gum will rationalize fraud if they think they will be stealing from an insurance company, bank or big corporation." morality vs business deal. The way I read the mortgage (in laymans terms). If you lend me this money I PROMISE to pay back all the money with interest and If I dont fulfill my promise you can take back my house. Not paying back the money, when you could, is LYING. That would seem to fall into the immoral catagory. Also dont see why that wouldnt be fraud. Borrowing money with no intention of repaying. Thank god Im not a lawyer Now if you signed a mortgage that said I want to borrow this money and I have no idea whether I want to pay it back or not, but if I dont you can keep the house. Well I guess that would be a business deal and I would be ok with that. So as long as they guy tells the HELOC company that he wasnt sure if he wanted to pay them back, but they could keep the house, oh well.