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Buying Mortgage Securities
Old 09-29-2008, 10:25 PM   #1
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Buying Mortgage Securities

As I understand this current mess, a bunch of mortgages were bought by investors (or investment banks) who packaged them into groups and sold the rights to future cash return from those mortgages to other investors. With doubt that these will pay off as well as originally expected, the value of these "securities" has now fallen and is selling for much less than the original expected value. Further the market is so skittish about these mortgage back securities that it's difficult to find buyers at all.

So, if only I could find out which security is backed by my own mortgage, I could buy it back at a steep discount and forgive myself the original debt.

As an individual I know it's impossible to do so, but maybe if I could get together with other mortgage holders in my same "security" group, we could do something together. Dreaming, but an interesting thought.
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Old 09-30-2008, 01:22 AM   #2
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Quote:
Originally Posted by growing_older View Post

So, if only I could find out which security is backed by my own mortgage, I could buy it back at a steep discount and forgive myself the original debt.

As an individual I know it's impossible to do so, but maybe if I could get together with other mortgage holders in my same "security" group, we could do something together. Dreaming, but an interesting thought.

Probably no easy way of doing this. The problem is likely that your mortgage was bundled with other peoples mortgage with similar good credit, who put down 20% on the house. These MBS were probably acquired by Fannie/Freddie are likely trading near par.

Now if you took out an option ARM with no money down, and had foreclosure in the past, you could probably buy your mortgage for well under .50 on the $1.
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