HOW CAN THERE BE SO MANY BAD MORTGAGES? With all the mortgages on the GSE’s books, and the massive rightdowns from the banks? Now we have to resort to a RTC to take these bad mortgages off the bank’s books. I would have thought we would have been over this hump by now. Wait until all the other securitizations start defaulting in mass.
Loads of ppl who shouldn’t have bought houses did. I thank Robert Kiyosaki.
I don’t think they were all bad mortgages, but many people with good credit started walking away from their loans once they realized that they were underwater (owe more than the house is worth) . I would have done the same personally. One solution, in my opinion is for banks to write down these mortgages to realistic prices (say 20-30% cut from where we are now) and encourage these people to stay in their homes and pay their mortgages like they’ve been doing forever.