Jump to content
House Price Crash Forum
Sign in to follow this  
the primitive

Wtf?! Pay Your Mortgage In Full Now And Get 8% Off

Recommended Posts

No wonder investors will not purchase their mortgages as they only set up in 2006.

Much neg equity in the area already.

edit:cocked it right up as usual

Edited by the anti krust

Share this post


Link to post
Share on other sites

I was half-watching that USA Mr.Mortgage guy on YouTube a few months back....

and I gather he maxed-out on equity release from his home to invest in liquid savings elsewhere, as he expected the lenders to cut him a very good discounted deal for full repayment the future.

Share this post


Link to post
Share on other sites

Makes a lot of sense. I talked to a guy who works for a very large specialist commercial property lender about six months ago and suggested to him that perhaps his group should stop looking at commercial and go into residential as follows:

1. Buy a failed subprime residential lender for about 50% of the face value of its loan book

2. Buy a stack of other mortgage loan books trading at deep discount

3. Repossess anyone who even a falls behind a week on their mortgage

4. Pay the rest of the borrowers 10 - 15% of their mortgage to move to another lender

5. Shut the whole thing down in 12 months time

6. Go to the Caribbean to count the 30% profit you are left with.

He told me that they were already looking into it and had a few very Private Equity backers interested. Looks like its started. This is where repossessions start to rise sharply as lenders and vulture funds start buying up bucket loads of cheap MBS and any banks that have failed rights issues and then start getting the cash back in from the loan book ASAP by whatever means necessary. It wil be messy, painful and very profitable for those that do it - but a lot of builders, home owners and bankers will lose a lot of money, their homes and their jobs in the process.

Edited by Wad

Share this post


Link to post
Share on other sites
Makes a lot of sense. I talked to a guy who works for a very large specialist commercial property lender about six months ago and suggested to him that perhaps his group should stop looking at commercial and go into residential as follows:

1. Buy a failed subprime residential lender for about 50% of the face value of its loan book

2. Buy a stack of other mortgage loan books trading at deep discount

3. Repossess anyone who even a falls behind a week on their mortgage

4. Pay the rest of the borrowers 10 - 15% of their mortgage to move to another lender

5. Shut the whole thing down in 12 months time

6. Go to the Caribbean to count the 30% profit you are left with.

He told me that they were already looking into it and had a few very Private Equity backers interested. Looks like its started. This is where repossessions start to rise sharply as lenders and vulture funds start buying up bucket loads of cheap MBS and any banks that have failed rights issues and then start getting the cash back in from the loan book ASAP by whatever means necessary. It wil be messy, painful and very profitable for those that do it - but a lot of builders, home owners and bankers will lose a lot of money, their homes and their jobs in the process.

have you checked how much you are left with after you repossess?

Share this post


Link to post
Share on other sites

It has struck me that if you could buy up a stack of mortages at - say - 60p in the pound you could then rent out the properties you acquire through repossession at a sensible yield and have quite a nice looking portfolio to sell on.

I have no doubt that this is being looked at seriously by a number of PE houses...it's an obvious way to make money out of the current market turmoil.

Share this post


Link to post
Share on other sites
It has struck me that if you could buy up a stack of mortages at - say - 60p in the pound you could then rent out the properties you acquire through repossession at a sensible yield and have quite a nice looking portfolio to sell on.

I have no doubt that this is being looked at seriously by a number of PE houses...it's an obvious way to make money out of the current market turmoil.

Providing you accept DSS :P:)

Share this post


Link to post
Share on other sites

Edeus are now trying to maket this as an 'innovative solution'. Here's a few choice bits from their press release (5 hours too late methinks)

But edeus has never been interested in doing things the traditional way. This is an innovative form of balance sheet management and a straightforward solution to the problem of the misfiring securitisation markets.

From Alan Cleary, MD of Edeus

and

This is a typically innovative move from edeus. The team have always been prepared to act boldly – they’re willing to push the boundaries of convention. This is classic edeus.

From Mark Harris, MD of Savills Private Finance and Edeus **********

:lol:

Edited by JohnnyB

Share this post


Link to post
Share on other sites
Guest DissipatedYouthIsValuable
This might fall foul of the FSA as they expect people to be treated fairly and the courts may not allow it.

Ssshh. I want to see this backfire on a gang of ruthless ******s.

Share this post


Link to post
Share on other sites
Unbelievable. Expecting a lot of mortgage holders to be recent lottery jackpot winners are they?

They just want to shove them on to another lender. Not many lenders are going to want to take them on though. Just as well, i've heard Alan Cleary is an absolute cokc and i'll be glad to see him queueing up outside the job centre.

Share this post


Link to post
Share on other sites
Makes a lot of sense. I talked to a guy who works for a very large specialist commercial property lender about six months ago and suggested to him that perhaps his group should stop looking at commercial and go into residential as follows:

1. Buy a failed subprime residential lender for about 50% of the face value of its loan book

2. Buy a stack of other mortgage loan books trading at deep discount

3. Repossess anyone who even a falls behind a week on their mortgage

4. Pay the rest of the borrowers 10 - 15% of their mortgage to move to another lender

5. Shut the whole thing down in 12 months time

6. Go to the Caribbean to count the 30% profit you are left with.

He told me that they were already looking into it and had a few very Private Equity backers interested. Looks like its started. This is where repossessions start to rise sharply as lenders and vulture funds start buying up bucket loads of cheap MBS and any banks that have failed rights issues and then start getting the cash back in from the loan book ASAP by whatever means necessary. It wil be messy, painful and very profitable for those that do it - but a lot of builders, home owners and bankers will lose a lot of money, their homes and their jobs in the process.

http://uk.reuters.com/business/quotes/quote?symbol=BB.L

B&B could be snapped up for £320 mi at the current share price (52 p) .......

I'm sure Gordon would prefer that to nationalisation.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.