Twenty-five properties held by Batch Development Company, Inc. associated with the mortgage default were placed into receivership.
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Since 2008, the debt burden on households has declined somewhat, partly because of increased saving, mostly because of mortgage default.
Since then, about 1 in 4 of the nearly 200 plaintiffs has declared bankruptcy, about the same rate as subprime mortgage default.
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Not unlike the U.S. housing market over the past five years, home prices have been sliding in many southern European nations thanks to high unemployment rates, high mortgage default rates, a glut of available inventory and a lack of buyers.
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Because, again, since no one knew which mortgage would default first, it was impossible to assign a specific mortgage to a specific bond.
You might be able to put down less than 20% by having your mortgage insured against default.
Unable to refinance, the group is asking the lender to accept a discounted payoff on the loan, according to Trepp, which also showed the mortgage flagged for imminent default.
There are a growing number of strategic home defaults, deemed such when home buyers who can afford the mortgage payments choose to default because their homes are worth less than their mortgages Morgan Stanley estimates that 12% of defaults in February is from this category.
The problem with America's economy is that the last bubble, the "home-mortgage, derivative, credit default swap bubble" popped, as all economic bubbles eventually do.
Charlie Ledley and Jamie Mai, two investors with a penchant for finding mispriced options, reckoned that credit-default swaps on mortgage-backed bonds were just too cheap a trade to pass up.
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Among the most cautious is China, which has been selling American agency bonds since their main issuers, Fannie Mae and Freddie Mac, the two mortgage giants, flirted with default in mid-2008.
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The insurer had painted itself into a corner by writing credit default swaps on mortgage-related securities and collateralized debt obligations that were set to pay out in the event that those investments soured.
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You can blame the banks and the Street for precipitating the near meltdown in 2008-2009, but the country has sustained enormous shocks to its system that have nothing to do with credit default swaps and mortgage backed securities mufti puffti.
Greene became a billionaire by buying credit default swaps on subprime mortgage-backed bonds as housing crashed.
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He later became a billionaire by buying credit default swaps on subprime mortgage-backed bonds as housing crashed.
Nearly a third of our states do not allow lenders the recourse provisions necessary to go after a borrower's personal assets in case of default on a residential mortgage.
Does anyone remember mortgage security derivatives and credit-default swaps?
Of course, this type of policymaking underscores the importance of making the default choice a good one (an adjustable-rate mortgage with no down payment would be an example of a bad default).
On Friday, here at the Clinton Global Initiative, in Chicago, HUD Secretary Shaun Donovan and FHA Commissioner Carol Galante announced yet another: a program to pool together mortgage loans on the brink of default, and save them.
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Even though default rates on commercial mortgage-backed securities are less than 1.0%--compared with higher than 20.0% for high-risk home loans--that level is expected to rise as the global economic slowdown makes business conditions increasingly difficult for hotels, retailers and other companies carrying office building mortgages.
Mortgage holders will be less inclined to default since their houses are now appreciating assets.
Paired with that would be a prohibition on a mortgage lender from declaring a loan in default if an installment plan has been obtained.
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Trimming debt only for homeowners who are behind on their mortgage payments could lead other homeowners to default in hopes of getting a break and could inflame those who believe it is unfair.
Some investors infamously did make money from betting against American subprime mortgages, but their real achievement was to find a way of doing so, by buying up credit-default swaps that paid out when mortgage-backed securities soured.
In light of this, some mortgage holders have tried something radical: a voluntarily default on their payments.
Professor Cathy Lesser Mansfield of Drake University Law School has studied default and foreclosure rates in the subprime mortgage industry.
Most of the debt that is being eliminated is mortgage debt and most of it is eliminated by default and foreclosure.
An institution could be receiving all of the payments due on its mortgage backed securities just fine, with nothing in default.
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However, following the announcement Thursday of a multi-billion dollar settlement over mortgage servicing, CDS widened (showing perceived greater default risk) by 0.14-0.34%, according to CreditSights.
The market prices of many mortgage securities today reflect not just the likelihood of default, but a steep liquidity premium, because the paper no longer trades.
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