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To: PAR35

That could very well be true.

However, how does that compare with foreclosing on the properties if the loans are unpaid? Is there liability in that case as well?

Not being a smartass, I’m being serious.


33 posted on 12/02/2007 7:28:27 PM PST by RockinRight (Just because you're pro-life and talk about God a lot doesn't mean you're a conservative.)
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To: RockinRight

Foreclosure risk is factored into the pricing of the tranches. You bet wrong, and you lose money, but it is a known and expected risk. Having someone change the interest rate on you, however, for political expediency, probably wasn’t part of the deal.

If the servicer carries out the foreclosure in a commercially reasonable matter, there shouldn’t be any liability. If the servicer hasn’t done the paperwork properly, there may be.


39 posted on 12/02/2007 8:00:16 PM PST by PAR35
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