Buy the Bezzle?
2009-02-05 22:36:18.358179+01 by
Dan Lyke
1 comments
Daily Kos: Rep Brad Miller (D-NC 13 Dist.): Are We Going to Buy the Bezzle?
Lenders are quick to say that they have every right to full payment, that they don’t have to agree to modify mortgages. The savings and loan had every right not to settle their lawsuit, to let a court decide their claim against the bank. But refusing to do what makes obvious economic sense is suspicious. If lenders agreed to modify a mortgage to reduce the principal, they would have to change how they value the mortgage as an asset. How do lenders value a modified mortgage that does not reduce the principal, but that is destined for default?
Via.
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#Comment Re: made: 2009-02-06 17:45:38.765191+01 by:
andylyke
Wow! Putting the maximum possible settlement of a questionable lawsuit on the books at full valuation. If that isn't criminal fraud, then criminal fraud doesn't exist.
Relatedly - it's interesting how the bloviators rail against adjusting the principal or interest rates of a home mortgage in the course of bankruptcy as violating a sacred contract, but cheer when a corporation (e.g. Delta Airlines, United Airlines) takes bankruptcy specifically to void a contract with its employees.
Contracts are sacred when they serve the masters. He who has the gold makes the rules.
Sometimes it doesn't feel so bad being within 4 years of the allotted 3 score and 10.
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