Typically, in the loan and mortgage industry, when a customer fails to live up to his obligation, then you take ownership of the property to cover your losses. No question, pretty understandable. As basic as all the Business Law we had in college.
But what happens when a customer fails to live up to his obligation when it was the stupid system itself that sent them to such a dire situation of not being able to responsibly fulfill their part? Yes, Matilda, it?s the same shit. All across the United States, it?s take-back-that-damn-shit-property galore by banks, mortgage companies and investments companies. What do they do with those properties? Halloween place to party. Inhabited by ghosts. Let it rut! Termites invited!
Comes some twisted politically motivated economic strategy! ?Let?s buy all of these mortgages!? Huh?! Bad debts?! Receivables that can?t be collected?! Buy them up? Who does that shit?! Well, obviously, it?s still a strategy by Uncle Sam. I wonder what happened to the best minds of the US Business Schools. Shame! Scrap the GMAT! That’s no longer needed!
In all of these crap business moron strategies, political crap maneuverings, no one has ever thought of the homeowners. The U.S. homeowners. These blood sucking daytime bloody Wall Street drama of let?s shift these damn investment certificate papers plastered with golden returns and make money! For all these housing shit problems, no one ever dared to look at the very people who they?ve manipulated. The U.S. homeowners.
Finally, after the financial crisis, retirement investments that evaporated in the air, millions went to being homeless, world’s stock market crashing, someone is getting it right. And bloody shit! It would take a trillion bloody dollar losses for these people to wake up and and come up with the most basic of all the basic cure of them all!
J.P. Morgan Chase & Co. launched an ambitious plan Friday to modify the terms of $70 billion in mortgages for borrowers who are behind on their payments or soon could be. The move by the New York bank will cover as many as 400,000 borrowers. They’ll be moved into loans carrying lower interest rates, smaller principal amounts or other more-affordable terms.
The changes will particularly focus on a type of loan structured in such a way that the borrower’s outstanding balance sometimes grows month after month. J.P. Morgan inherited $54 billion of such loans with its takeover of the beleaguered thrift Washington Mutual Inc. in September.
In business financing and capitalization, equity or bonds or any type, when the debtor runs into trouble making payments, subordinated loans comes into play. Loan restructuring comes into play. The whole idea is that you cannot lose the other party in the game, otherwise you?d be alone in your business orgasm. Jerk all you want! Ain’t gonna give you any profit! So, why did the banks and investment companies never thought of this from the beginning? Weird, but every horny greedy person in Wall Street still has this evil idea that there will be economic erection from dead mortgage backed securities.
Business is a two-way street. Duh! A kinder selling lemon drinks can tell you that! You don?t push the other party out in bed! Hey! they were the ones who propelled the world’s economy in the last 8 Clinton years. 90-days foreclosure moratorium is not enough but I commend J.P. Morgan for the strategy in the right direction.
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