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

To: MulhollandDrive who wrote (150227)	9/25/2008 12:34:29 PM
From: GraceZ	Read Replies (2) \| Respond to of 306849

Clearly the idea of securitizing mortgage assets has been thrown on the bonfire of failed financial innovations. No one but the most hopeful of homeowners harbors the illusion that this plan will prop up RE prices to make those underwater on their mortgage in the black again. The question is, will it be easier with a RTC type entity to clear these bad mortgages out, to make a decision to either write down the RE asset and re-create a mortgage the borrower can pay or foreclose on the properties, allowing the mortgage asset fall to the liquidation price on the property. It seems what we're now grappling with is that once the mortgages were securitized and sent halfway 'round the world, borrowers lost the ability to renegotiate the terms of their mortgages.