$200B For Subprime Notes- Effect?
I wonder if the Federal Reserve announcing that they will loan $200 billion against subprime notes as security will encourage lenders to hold on to the notes to use as collateral rather than foreclosing and selling the property for far less as an REO. Does this spell the end of the dirt cheap REO market? The heavily discounted bulk note market?
Chris
read the press release again... AAA-rated CDO/CMO/CMBS type bonds..
As part of a coordinated action taken by the Bank of Canada (BC), the Bank of England (BE), the European Central Bank (ECB), and the Swiss National Bank (SNB), the Federal Reserve announced a significant expansion of its securities lending policy. The Fed announced the creation of a Term Securities Lending Facility (TSLF) to make available to primary dealers as much as $200 billion of Treasury securities for a period of up to 28 days in exchange for a pledge of other securities including agency debt, federal agency backed mortgage securities (MBS), and triple-A rated private label MBS.
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I would like to purchase 2nd unit and rehab at the same time I do the fist thanks
sure- I have a condo unit under agreement which is one of three units. I would like to buy another unit but it was taken off the market by the realtor. The realtor says that the bank/asset company canceled the listing. I will like to buy the note at a discount directly from the bank if I can contact Washington Mutual reo department, however from what I have read online it seems they are very hard to get a hold of. I need to find a contact number that I can speak to someone about purchasing this property.
I did check the tax records and it looks like dorche bank national trust is the trustee. Do you think I would be better off going through them? Thanks for any insight you may have.
Nh isnt too good but i am usually in MA. In haverhill, ma duplexs start at 100k, last year the cheapest was 190-200k. I went to an auction the other day and a 2 unit went for 65k.
your right, just spoke to attorney and he thinks its going to auction. Thanks for the insight
Sorry SWAL, what is Alt A, would you explain pls.
Alt "A" paper is just a step above sub-prime...generally good credit histories but mostly stated income...this is the real unreported problem that combines with sub-prime to provide a double whammy on the housing economic picture...reminiscent of the RTC in 1990 only projected to be much worse and combined with the falling dollar and possible $4/gal gas can put us into a very serious recession...there is a real concern that the fed is charting new territory and the unforseen creates a market psychology that may sink the economy ...only time will tell...regards, CWal
I expect a big government bail out of institutional investors, with tax payers footing the bill even as their houses are foreclosed on- but that is just my skeptical view of this government "of, by, and for the people".
I suppose that since corporations are now legally persons, of, by and for the corporations is just a logical interpretation of that...
Chris
Bear sells for $2 per share.
To me, that speaks volumes about what many other investment banks are worth: next to nothing.
Look out below.
[addsig]
cabldawg,
Glad to meet you.
In the situation you have described the lender calling the Due On Sale Clause with the amount of foreclosures currently going on is such a minor concern I do not understand how it even was mentioned. As a matter of fact it has not been a major concern over the last 15 years I have been involved in receiving the deed from sellers.
Now comes the point of not having the deed in your name as your seller seems to be in a poor financial position, meaning whatever liens or encumbrances are heading his way will attach to the house unless the deed is in your name.
You want to do a title search and find out what if any liens or encumbrances are currently attached to the property, if it comes up clean I would recommend using paperwork that gives you ownership of the property, leaving the existing financing in his name, what we call Subject To investing.
John $Cash$ Locke
[addsig]
My intentions on purchasing this home is putting $6000 down, although he is not directly asking for it.
My only financial pitfall is my credit score due to fighting a long drawn out custody battle attempting to protect my kids. They are my number one priority and my credit suffered because of it.
My income is not an issue at all to qualify for the loan, but I am not wanting to pay additional points on one because I made my kids priority over debt.
First start here http://www.corp.ca.gov/pub/mb.htm
Wait. You user name is loanbanker and your profile shows you as a loan officer? Perhaps you could give us a little more info on who you are and what you know.
[ Edited by lacashman on Date 03/22/2007 ]
Thank you for the link. Fair enough regarding who I am and what i know.
I have been in mortgage lending for 10 years. Currently I work with my wife out of our house in Sacramento running a netbranch. We currently have 7 independent contractors that work for us.
I have used my knowlege in Real Estate to purchase 3 homes with no money down and made a profit on each one. 2 of the houses have equity lines I can pull from if needed totalling around 90k.
I have worked for several years to build things to where they are now. However now I am looking for a different direction. So I have created a website the brings in 6-10 forclosure leads per day. Most are too high LTV.
However some can be helped. In the process of pricing out deals I started wondering what it would take to become a hard money investor myself. So I figured a good place to ask would be a board such as this one.
I am also researching commercial lending as its something I have always considered.
[ Edited by loanbanker on Date 03/22/2007 ]
Hmmm, I just had a thought on this one. If one is lending money to others as a hard money lender, would you be subject to the banking regulations that the banks and credit unions have to follow? At what point would the federal regulations start affecting a hard money lender?
Thanks,
JS.
Quote:
On 2007-03-22 19:07, smithj2 wrote:
Hmmm, I just had a thought on this one. If one is lending money to others as a hard money lender, would you be subject to the banking regulations that the banks and credit unions have to follow? At what point would the federal regulations start affecting a hard money lender?
Thanks,
JS.
Mortgage lenders are not treated as a bank. They do have to follow state and federal lending laws.
Quote:
However some can be helped. In the process of pricing out deals I started wondering what it would take to become a hard money investor myself. So I figured a good place to ask would be a board such as this one.
Since people will still be living in the properties you should set up a mortgage lending company and follow your state laws.
Most Hard Money lenders only lend in the first position. But it sounds like you will be lending in the second position. So you need to figure in the cost of taking back a property at the court house steps to protect your investment.