Who 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.
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
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