New Opportunity for Investors?

By
Mortgage and Lending with Equity Resources NMLS 67179 Licensed in NC

The Obama administration is due to release details for the "Troubled Assets" on the Bank's books later this week.  Those would be the "Mortgage Loans" that went on the bank books in 2006 before all of this mess happened.

It appears to me that the plan fall along the lines of this... If the assets have been sitting on the bank books for an extended period of time, and maybe they have had a few lates on the mortgages, then the government is going to loan money to Private Investors to purchase them.  If the loans have been made under the newer, strict guidelines of the last 18 months, then the loans will be purchased through the new TALF program. This program means the government is purchasing the loans directly, we ("the people") will hold them, and sell them to banks once all of this mess is over.

If you are an Investor... purchasing mortgages from the banks, with government money, for pennies on the dollar seems like it would be a darn nice deal! I am NOT complaining here!  Ohhh NO!  We desperately need a plan for purchasing mortgages, so that we can get rates lower!

From Andy Lees at UBS:

The U.S. will give further details of the Geither public/private partnership plan to take bad assets off banks books, later this week a senior department official has said. The official said that the Treasury wants to put out enough information in the coming week so that the potential participants can better judge the proposal. It will also detail the timeframe in which it will become operational.

So far the plan is expected to leverage both public and private capital to buy assets using government financing. The initial funding would be from what remains of the USD700bn financial rescue fund, but a "placeholder" provision in President Obama's fiscal 2010 budget plan signals a possible request of around USD750bn in new funds.

Neel Kashkari, the Treasury's interim administrator for the USD700bn rescue fund told law makers last week that private investors are ready to invest in distressed mortgage assets if they can get financing.

With no private financing available, they could only pay prices that are too low for banks to be willing to accept. The bad asset plan is expected to be structured along similar lines to the TALF, which is scheduled to launch this week, although the TALF will be restricted to funds investing in highly rated asset-backed securities.

 


 

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  1. Yvette Gardner 03/27/2009 01:17 AM
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Rainmaker
691,171
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

I'm with you at least there is a plan-It is a good time to invest.

Mar 16, 2009 07:20 AM #1
Rainmaker
210,056
Marzena Melby
Coldwell Banker Burnet Realty - Richfield, MN
Realtor, Twin Cities Minnesota Real Estate

Interesting...  There are so many investment opportunities out there right now, but I wonder if investors are somewhat afraid to purchase assets.

Mar 16, 2009 07:41 AM #2
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Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

Thanks Eleanor for this news.  It sure is a great deal for investors.  I just passed your name along to a couple of people looking here at investing.  I told them YOU are the expert lender for our area!

Mar 16, 2009 07:45 AM #3
Rainmaker
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Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Hi Eleanor: Thanks for the heads up - I was not following this issue - I will have to keep an eye out for it now!

:)

Matt Listro

 NCF

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Mar 16, 2009 07:49 AM #4
Rainer
44,424
Sharon Fleming
Real Living Realty Unlimited - Port St Lucie, FL
Realtor, Port St Lucie-Florida

I agree it is a good idea, but I am struggling to find financing for Foreign Nationals, I have buyers in Bermuda that can not get financed! They do not hold a social security card, are willing to do so, but not so sure what all that entails... I have searched high and low...any suggestions would be greatly appreciated.

Mar 16, 2009 08:00 AM #5
Rainmaker
339,591
Karen Cooper
Karen Cooper | Sr Retail Loan Originator ! NMLS # 223305 | 360 Mortgage Group LLC Austin Texas - Leander, TX
Helping Homeowners w/Home Loans in 27 US States

Hi Eleanor - Thanks for the update on this. I had not heard about it. Of course, that might be because I shut all news inputs off, so I could take a breather from all the negative input. Any REASONABLE steps taken to reduce the inventory of vacant homes is a good step, IMHO.

Mar 16, 2009 08:18 AM #6
Rainmaker
339,591
Karen Cooper
Karen Cooper | Sr Retail Loan Originator ! NMLS # 223305 | 360 Mortgage Group LLC Austin Texas - Leander, TX
Helping Homeowners w/Home Loans in 27 US States

Hi Eleanor - Thanks for the update on this. I had not heard about it. Of course, that might be because I shut all news inputs off, so I could take a breather from all the negative input. Any REASONABLE steps taken to reduce the inventory of vacant homes is a good step, IMHO.

Mar 16, 2009 08:18 AM #7
Rainmaker
575,553
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

I hope if they do allow this that the banks will free up a bit more on the lending guidelines.

Mar 16, 2009 01:59 PM #8
Rainmaker
212,987
Sandy McAlpine
RE/MAX EXECUTIVE - Cornelius, NC
Search Lake Norman Homes For Sale - Lake Norman NC

SO when is a good time to invest? all you hear in the news is now is a good time, now is not a good time. Take your money out, put it back in! it's all so confusing. Someone gets left holding the bag!

Mar 17, 2009 07:16 AM #9
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Eleanor Thorne

Equity Resources 919-649-5058
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