Thursday, September 25, 2008

Rescue plan could hinge on value of bad assets

Rescue plan could hinge on value of bad assets: "Treasury Secretary Henry Paulson's $700 billion financial rescue plan has grown from a program focused on relieving lenders and investors of their bad mortgages to one in which the government would have the authority to take over any kind of problem loan or other asset, from bad credit card debt to commercial real estate securities."
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Fred Pilot wonders if this would include delinquent HOA assessments. Maybe HOAs should start packaging their bad debt as securities and selling it, because if the credit markets dry up they won't be able to borrow to repair common area elements that 1) they have insufficient reserves to repair, and 2) they can't get enough from the owners in regular or special assessments to fix, and 3) there ain't no place else to go but the bank.

1 comment:

Anonymous said...

I assume CAI is sending folks to Washington right now, with their hands out . . . .