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mk  ·  3234 days ago  ·  link  ·    ·  parent  ·  post: Wall Street Veterans Bet on Low-Income Home Buyers

    The firm says on its website that it is “creating investments to capitalize on the next phase of the U.S. mortgage” market.

The phase after that will probably include pitchforks.

    In April 2011, Harbour sold a contract for deed on the house for $36,300, according to public filings. Under the terms of that deal, the 24-year-old woman who now lives in the house is required to pay 10 percent interest or a monthly base payment of $314 — a sum that does not include property taxes, insurance or any outlays for repairs or renovations.

Jesus. That's mafia-level stuff. I bet since the owner can't foreclose, if you package these, they could make for high class tranches. I do hope they are creating CDO's with these, selling them to pension funds, and then taking swaps against them. That'd be great. Fantastic stuff. Fuck.