[ognend]

Originally Posted by Lilybeans

No. Mortgages aren't bad debts that are sold to servicers for pennies. Servicers do just that-service the mortgage and get paid for that. They don't own the mortgage.

Now, how do you think banks get money to loan for mortgages? If you borrow $100,000 the bank may sell that loan to Fannie Mae or Freddie Mac, but not for pennies on the dollar. They sell it for face value, less a small percentage for the servicing they continue to do. The money they sell it for is used to fund the next mortgage for someone.

Mine got SOLD twice.. The letters I got from the lenders said so. I doubt that someone buys a mortgage from someone else for the same exact amount. In the last few years mortgages were sold to get rid of them. Every time you sell to get rid of something, you take a hit by selling cheaper. Conversely, the new lender gets a good deal.

[ognend]

Originally Posted by Huckleberry3911948

interesting stuff, 1st non dischargable student loan, now house, there is a pattern.

eh?

[annerk]

Originally Posted by ognend

Mine got SOLD twice.. The letters I got from the lenders said so. I doubt that someone buys a mortgage from someone else for the same exact amount. In the last few years mortgages were sold to get rid of them. Every time you sell to get rid of something, you take a hit by selling cheaper. Conversely, the new lender gets a good deal.

Actually that's not the way it works at all. Usually when the actual note is sold, it's for a profit. Sometimes it is an at par sale due to an acquisition.

[SuiteLiving]

Originally Posted by annerk

Actually that's not the way it works at all. Usually when the actual note is sold, it's for a profit. Sometimes it is an at par sale due to an acquisition.

Most mortgages are packaged into CMO's and then sliced up into tranches with varying degrees of risk and yielding varying interest rates. They aren't sold as a single note.

[annerk]

Originally Posted by SuiteLiving

Most mortgages are packaged into CMO's and then sliced up into tranches with varying degrees of risk and yielding varying interest rates. They aren't sold as a single note.

Yes, I'm well aware of how the packaging works in the secondary market.

[ognend]

Originally Posted by annerk

Yes, I'm well aware of how the packaging works in the secondary market.

Which just proves my point from the get-go, mortgages are just paper to the lenders. They are not "homes". Homes are just the underlying collateral. Anyone thinking of it any other way is deluding themselves. We saved a bunch of paper shufflers om account of real people with real assets that lost value.

[Lilybeans]

Originally Posted by ognend

Which just proves my point from the get-go, mortgages are just paper to the lenders. They are not "homes". Homes are just the underlying collateral. Anyone thinking of it any other way is deluding themselves. We saved a bunch of paper shufflers om account of real people with real assets that lost value.

Mortgages have never been anything other than security for a loan. That's the definition. I always laugh when people tell me the bank owns their home. Never. Banks have a lien on it, but they don't own it.

Banks have commercial paper that is an asset that can be sold. Car loans, boat loans, T-bills, securities, all commercial paper. So what? That doesn't relieve the homeowner of his obligation.

[annerk]

Originally Posted by ognend

Which just proves my point from the get-go, mortgages are just paper to the lenders. They are not "homes". Homes are just the underlying collateral. Anyone thinking of it any other way is deluding themselves. We saved a bunch of paper shufflers om account of real people with real assets that lost value.

You're the deluded one if you think that all of those "paper shufflers' are high paid executives. Most are average people--your neighbors. They also lost money.

[ognend]

Originally Posted by annerk

You're the deluded one if you think that all of those "paper shufflers' are high paid executives. Most are average people--your neighbors. They also lost money.

I never said they only were high paid executives, don't put words in my mouth.

I was just trying to respond to the "it is my home, it is not an investment" bullcrap someone put forth here and the "doing the right thing" associated with it. Sure it is an investment, the whole world, including your own lender sees it as an investment. It is just paper changing hands.

[Lilybeans]

Originally Posted by ognend

I never said they only were high paid executives, don't put words in my mouth.

I was just trying to respond to the "it is my home, it is not an investment" bullcrap someone put forth here and the "doing the right thing" associated with it. Sure it is an investment, the whole world, including your own lender sees it as an investment. It is just paper changing hands.

You are trying to rationalize your irresponsibility. There is no point in taking this further.