Admin

Who Wants To Buy Toxic Assets?

By
Services for Real Estate Pros

Toxic AssetsWho Wants To Buy Toxic Assets?

It seems that many Private Investors & Hedge Funds do.

"Toxic asset" has become economic shorthand for the bad loans at the center of this entire housing industry mess.

The most well-known of the assets are mortgage-backed investments that last year threatened the very survival of the world's biggest banks.

At the height of the housing boom, selling these "bundles of mortgages" freed banks to loan even more money.

Banks, Wall Street firms and hedge funds also bought these securities as investments. But the assets have lost their value as homeowners defaulted on the mortgages, foreclosures increased and home prices dropped. toxic assets

The plummeting value of the mortgage-backed investments, and other securities built around loans, has forced banks to dramatically cut back on their lending to each other, businesses and consumers.
The recession will NOT end unless the banks can eventually get rid of the "toxic assets" still on their books.
hedge fundSo who is willing to buy the toxic assets to allow broader bank lending again?

Private Investors & Hedge Funds...several have implemented programs to investigate each individual performing mortgage loan.

The process includes:

  • Homeowner's payment history
  • Terms of the loan
  • Value of the property securing the loan
  • Income Stability of the homeowner

 

Domestic & Offshore Hedge Funds are ready and geared up for this...Trading Managers believe the discounted assets could pay off huge returns once the economy stabilizes.

Having banks move toxic assets off their books, will be a BIG step in stabilizng the economy.

 

 

Peace in the Neighborhood is possible with a Mortgage Principal Reduction

 

 

P.J. Virgilio Jr., Realtor 408-568-6578 Selling homes in the Greater San Jose area and South through San Martin, Gilroy
Keller Williams Realty Silicon Valley - Gilroy, CA
San Juan Bautista and Hollister as well!

Very positive article MJ , Thanks!

Oct 17, 2010 12:29 PM
Jeremy Moore
Century 21 United Realty* - Peterborough, ON
www.century21.ca/jeremy.moore

Good information.

Oct 18, 2010 01:34 AM
MJ Anton
Ormond Beach, FL

@ Patrick & Jermey....thank you both

Oct 18, 2010 05:27 AM