You too can bail out of that pesky sub-prime mortgage

According to Barry Ritholtz of Big Picture, an article written for the AP wire service (for which he was interviewed) hasn’t gotten enough notice- yet. Maybe it’s too dangerous, and it’s been suppressed!

No, seriously, this item apparently contains a pretty cool angle that bisects the industry’s slant, pretty much reminding us we have a law about how any mortgage, even a sub-prime mortgage, can be rescinded- transforming the lender into just another creditor (not the primary).

The pump-and-dump near-boiler room nature of most sub-prime mortgage brokers probably means loans were often rushed into being, without proper documentation. This just might be the saving grace for some grieving “homeowners” who are upside down. As we now know, many do regret ever taking on that nasty, vicious, landed-serf retro death-stalking sub-prime mortgage.

Hell, there might even be an escape from a conventional mortgage, considering the Truth-in-Lending Act (TILA) is really quite clear about disclosure, for all types of loans.

As home values plummet, it is natural to expect that some people might want to consider consulting with a legal professional with expertise (since they didn’t read their contract in the first place), ascertaining if this enhances their position- and packing a parachute for later use, should their loan obligation becomes too onerous.

Maybe paralegals can take on some extra work; who knows, this might even become a growth industry over the next few years.

This article hasn’t appeared yet in any of the news sources I frequent (e.g. Yahoo), but since it is AP it’s bound to appear sooner or later. I’ll keep an eye and an ear open and link to it when it does.

This was a public service announcement.

Advertisements

4 Responses to You too can bail out of that pesky sub-prime mortgage

  1. The good news to the borrower is that the threat of de-collateralization may be sufficient to get the lender to renegotiate the loan to a market prices, fixed rate. (It was Dow Jones, not AP)

  2. Paco Bell says:

    That is a very good point. It’s certainly the ONLY leverage any FBer’s gonna have at this stage. YMMV.

  3. On photo he’s showing the size of the mortgage crisis 🙂

  4. Paco Bell says:

    Not the size of his cock? Or his wife’s pussy?

    Or the lies he like to tell (“there is no subprime crisis”, “the subprime crisis is contained”).

    Or maybe he’s holding an invisible balloon.

    C’mon, you can do better than that!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: