Comment: Need a lesson in balance sheets first

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Need a lesson in balance sheets first

I understand the frustration with political groups who get co-opted by special interests of the left, right, pundits and politicians. E.G OWS
the nature of buying your own debts is something I have professed should be the basis of a class action suit against the monopoly of the mortgage clearing houses.

If OWS found a way to break the banking monopoly by forcing or tricking the banks into allowing them the right to buy a block of debt... well, I am jealous. Most people think banking mortgages are simple contracts of a fixed value. I.E. that your mortgage is worth what you have left to pay on it.

Nothing is farther from the truth!

The bank balance sheet and the debt are graded. If a bank has a bunch of debts with deadbeats at too low of an interest rate for the grade of debt then they are motivated to take the loss and move the debt for whatever price they can get.

With a fixed interest loan that is not backed by 80% of an asset's value, and being paid late the price can be less than half. If it is 60 days + late and the loan is over 100% of value (upside down) the loan can be bought for 5-7% or even less.

Following me? This improves the bank balance sheet and thus they can attract better investors (stock prices) and they get better bank-to-bank rates, window privileges, etc. ALL FAR MORE VALUABLE THAN THE LOANS THEY ISSUED WITH FRACTIONAL RESERVES.

So yes, when your loan was bought by a new servicer ask yourself if you had used a grace period, were late, late 30+, 60+ and if the new servicer is actually doing so for FANNIE MAE. These loans could have been bought for less than 1% of what you owe. ...AND YOU DON'T HAVE THE FIRST RIGHT OF REFUSAL NOR THE RIGHT TO NEGOTIATE THAT INTO YOUR LOAN! Pis sed off yet?

So when you see that OWS bought $15,000,000 in debt for $400,000, you are witnessing a purchase of $37.50 for one dollar. i.e. $375,000 mortgage for $10,000. ..<<<< 2-2/3% >>>> I could definitely come up with $10k if I was buying off my own $375,000 mortgage that I was paying $2700 a month on.

But alas we must all have a standardized mortgage terms that prevent the owner from the right to buy his own mortgage for the same price the market delivers. Welcome to the US government established banking monopoly.

I hope that clears things up for people.