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| It seems to me, in trying to make sense of any of this, and I do consider myself pretty decent at accounting and thus far we are only seeing generalities versus actual specifics, which of course we are all considered too stupid to be privy to the real details, if loans are purchased at deep discounts--how does that recapitalize the banks? It appears more likely, to me, and only speculation on my part, it is more likely the loans must be either bought a par or at premium prices==tax payer potential loss.
Additionally, while I have not purchased any residential real estate for a few years, I wish to share a personal story. A few months ago, a couple in a marital split...intending to file divorce..were referred to me as a possible person to purchase their property on a short sale. I am familiar with the neighborhood..it is a good property but has a second mortgage....this is a potential ugly divorce situation & both also own huge suv's & all the toys and have not made a mortgage payment for months. I gathered all of the information & proceeded to investigate. I left several messages with the loan servicer & was finally called back & the loan servicer (much to my surprise) is located in the Phillipines. They could provide me with no details on the mortgage, meaning they had no idea of the location of the documents. There was also some language difficulty between me and the Phillipine person. I was assured I would shortly receive all the information to enable me to come up with some type of offer. I have heard nothing. A couple of weeks ago, I ran into an attorney friend, a top notch real estate lawyer, & mentioned this to him....he laughed....said his office has run into the same thing, except the loan servicers were located in India. As he described this deal....and we all know accuracy is preferred in getting some kind of title opinion...he said some of these mortgage packages have been traded between various parties a dozen or more times and he is convinced the document situation is going to be a major black hole requiring a great deal of time. Therefore, when I see this bail out plan, I can visualize a real windfall for attorneys and Certified Public Accountants....Good real estate attorneys are not cheap.
I was torn between (not really) watching a couple of Simpson videos or to watch the big boys try not to show panic on camera....decided the big boys are now funnier than the Simpsons, except this is real....it is not good.
Makes me wonder if the boys at the top actually know or understand what sort of real administrative mess this thing involves?
Plan for the worst, hope for the best and am trying to figure out what to do with corn and soybeans but think a little more patience is required.....a weak dollar should serve as a positive in my opinion...but..who knows? Who knows anything?
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Wondering?
