Quote:
Originally Posted by fotze
Apparently these brokers were offering mortgages with a mortgage rate of i.e 3% for the first year that would jump to 8% after the first year.
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I have lent someone money, and they can't pay. So, now I'm forced to
decide. Let them go bankrupt, leaving me with holdings I don't want,
leaving them without the means to pay me, and probably driving me
bankrupt as well.
Or do I go and negotiate? Apparently they can afford the 3%. Can they
afford 4%? 5? The interest rate in the US is around 2%. This gets me
income, not as much as before, but income none-the-less, and also they
don't go bankrupt, nor do I. I also don't end up with holdings I don't
want.
Why can't the banks do this? Would it not be in their best interest?
Or has it something to do with the repackaging of the loans?
ers