Upside Down Mortgage

Posts Tagged ‘housing’

Predatory Lending Lawyers

Question: where do you go to file a lawsuit without a lawyer?

i want to know how do i file a lawsuit without a lawyer? for predatory lending practices an harressment an diress

Answer: You can go to your local county court house and tell them you wish to file a civil suit; a legal aid will give you the proper paperwork and send you in the right direction. With this type of civil suit you'll most likely want an attorney to do it for you, they'll have a better chance at getting a judgement in your favor; the lending companies lawyers will rip you apart.

Joplin, Missouri Predatory Lending Lawyers - The Hershewe Law Firm

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Subprime Financing

Question: how does citibank writes off $XYZ billions work?

I mean I read in many places that major banks write off bad-debt(subprime loan etc...) . Is the real loss to those banks. From what I know, those banks intern have sold those mortgages as some kind of securities or bundles, which are at some point or other finally sold to individual investors. So how do those mortgage loans contribute to the $XYZ Billion write-off. The loss should be to the individual investors not the finance companies. Can somebody explain?

Answer: The bank also bought thos eCDO and MBS to park their cash. Banks seat on billon of cash. When they give you a 6 monbth CD at 3%, the money to pay your CD interest come from their own investment. Banks also set up off balance sheet entities that bought these CDO and MBS, and the bank gaurantee repayment on these off balance sheet arrangement. The write off comes from the issue or marked to market. As there is no liquidity for these type of investments (i.e. it is not being traded daily, nor even monthly) they have design complicated calculations to estimate the fair value of the CDO and MBS. The problem arised when the market froze itself and no one was buying these securities and the deliquency rate was increasing. The banks were stuck with these investments, with increasing delenquency rate and they had to market them down on their balance sheet (eventually that does not mean that the cash flow generated by the investment is bad). If noone can put a fair value to the security you have to writte it off to $0.
Hope this help
PS: bank buy each other bonds and securities all the time. That's how they lend each other.

Fresh Start Auto Loans. Cincinnati's leader in subprime financing!

Subprime Housing Crisis

Question: what is mean by subprime loan write-off?

I read about a subprime crisis in US and resulted write-off by major home loan lenders. Does it mean customer needs not to pay the home loan taken by them and own the house without paying the rest of installment?

Answer: No! It means the banks are assuming they won't get paid in full - they are 'writing off' the investment as a total or partial loss.

U.S. Sub-Prime Mortgage Crisis