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

To: Bonefish who wrote (150339)	9/26/2008 11:43:45 AM
From: GraceZ	Read Replies (1) \| Respond to of 306849

What is mezzanine? I'm assuming, the way it is used here, it is subordinated debt, that these are HE or HELOC loans with or without a primary mortgage on the security. A lot of house poor people borrowed money on the rising value of their houses, people whose main asset was their house. They didn't have enough credit or income to get anything but sub prime loans, but they owned a house that was completely paid off. Because it's not a purchase loan it is always considered a home equity loan and not usually eligible for the lower rates available to those who purchased houses nor could it be bundled with purchase loans.