All this talk of ban
All this talk of banks, bonuses, FDIC fees, bank falruies, and loss share agreements makes me wonder, when is a bank better off foreclosing and charging back part of the loss to the FDIC? Yes, this will depend on present value. I bet there are a bunch of very low fixed interest rate loans that the banks would love to flush out, yet they don't want to take massive present losses.Oh, I hope it is obvious that this only applies to those assets that the bank has a loss share agreement with the FDIC. As far as I am concerned, this is only the FDIC's way of pushing the point that the cash must be paid out in time.I think I need to start a new Church of Real Estate (CRE). My new church will be based on the belief in home ownership. You must believe that prices can only go up to join. And if you think that prices might have gone down, it's just a test of your faith! Seriously, people treat home ownership like some religion, and I want to be the premier Evangelist. Late night television, here I come, maybe I'll get the 11:35 NBC time slot? Rate this comment: 0 0