Columbus OH – Bear Stearns was a survivor. It
survived the Great Depression without laying off any employees. It survived
World War II, and 9/11. What killed it off during a time of peace and relative
stability?
Click
here to discover how other sellers successfully did a short sale and avoided
foreclosure. http://columbusohshortsaleadvisors.com/
The problem was that it had engorged itself on risky mortgages. In my opinion,
the banks were playing a risky game. They would make risky loans and then sell
them to Wall Street Firms like Bear Stearns.
The Wall Street Firms would pay a premium because of the high interest rate on
the loan. They would then resell the risky loans for a profit.
They would sell the loans to the general public (most likely for more than they
had paid for them.) They would take a package of loans and
"securitize" that bundle. Here is an example of how this would work.
New Century Financial issues a loan to you. New Century then sells that loan to
a Wall Street Firm, along with 900 other loans.
The Wall Street Firm then takes that bundle of mortgages and "slices and
dices" the ownership of them. They would sell certificates that
represented ownership of a percentage of that bundle of loans.
Let's say they had a bundle of 1,000 loans. They might sell 10,000
certificates. Each certificate holder would get some of the monthly payments.
But, here is where it got even more crazy.
The Wall Street Firm would sell better quality certificates and lower quality
certificates. They laid out guidelines, that if 10% of all the loans in the
bundle defaulted, then the lowest quality 10% of certificates wouldn't get paid
any money at all.
It used to be that you borrowed money from a local banker you knew and trusted.
That bank would expect you to pay on time. If you didn't pay, then that bank
lost money.
They didn't transfer all the risk to Wall Street or someone else. If they gave
out bad loans, they lost the money personally. With these crazy, engineered
loans, the person losing the money could be anywhere in the world.
Maybe in China, Dubai, or Norway. Or, the owner of the loan could be your
co-workers' Pension Plan. CALPERS, which stands for California, Public Employees
Retirement System, supposedly lost a lot of money on these certificates.
I heard that they invested in these risky certificates. Why? They wanted to
earn a better interest rate on their investments. When the housing market
crashed the certificates they owned dropped in value.
Lets say that you live in California and your mortgage was "sliced and
diced" by Wall Street and CALPERS bought one of those "slices."
So they could own some of your mortgage.
Your neighbor might have a CALPERS's Pension, thereby owning a percentage of
your mortgage. Sounds crazy, right? Thinking about
a short sale?
I can help you short sale your property and get back on your feet. Send me an
e-mail at robin.lemmons@kingthompson.com.
I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any
questions you may have. Or, if you prefer, you can call me at 614-741-2495.
Discover how other sellers successfully completed a short sale and request a free
consultation by clicking
here. http://columbusohshortsaleadvisors.com/
Thinking about a loan modification? Our Columbus loan modification kit has the
instructions you will need to get a loan modification approved with your bank.
Click
here to request a copy. http://columbusohshortsaleadvisors.com/
Thanks for reading this, Robin Lemmons.
Rick & Robin Lemmons is a Real Estate Team at Coldwell Banker King Thompson.
Phone: 614-741-2495
Email: robin.lemmons@kingthompson.com
A Zest For The Best
View My homes for sale at www.rickandrobin.com.
Columbus Loan Modification Help, Columbus Short
Sales, Columbus Short Sale Realtor. Columbus Short Sale Realtor. Columbus OH
Short Sales. Columbus Realtor. Columbus OH Short Sales. Columbus Realtor.
Copyright 2012 SFI Marketing Institute, LLC. All Rights Reserved.
Important
Notice
Rick & Robin Lemmons, Coldwell Banker King Thompson, and the Stop Foreclosure
Institute are not affiliated in any way, shape, or form with the government.
Our services have not been reviewed or endorsed by the government or your
lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to
help you on a short sale, your lender may not agree to a short sale or to modify
your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else
in life. It takes work and persistence to convince your lender to modify your
loan. No matter what you or we do, your lender may not approve a loan
modification.
We do not recommend that you stop paying your mortgage, because this will cause
damage to your credit and could cause you to lose your home. Because we know
avoiding foreclosure is so important to any homeowner, we recommend that you
speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a
licensed professional before making any decision. Information is deemed
reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your
lender if it does not meet your approval. If you decide not to go thru with the
short sale, then you do not have to pay us our fee. We normally make a real
estate sales commission for helping you on a short sale.
The views expressed here are Robin's personal views and do not reflect the
views of Coldwell Banker King Thompson.
This information on Columbus Short Sales: How Banks Were Able To Make Risky
Loans With Little To No Risk is provided as a courtesy to our viewers to help
them make informed decisions.
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