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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: KPHinds who wrote (110592)1/18/2008 11:11:47 AM
From: Knighty Tin  Respond to of 132070
 
Many subprime loans started as negative equity loans and they sure haven't gained any equity with prices going down. The property is worth something, but nowhere near the loan size. My guess is you have to take a 40% writedown to cover the decrease in home values and the costs involved in evicting the borrower, fixing up the place, holding it as a negative income producing asset, and, hopefully, selling it.