The Room 208 Blog

There has been much news of financial difficulties these days all over the world, and especially in the United States.  Companies that invested heavily in mortgage-backed securities or MBS’s are feeling a great deal of pain due to the devaluation of the housing market all over the US.  With many homes in or about to go into foreclosure, banks have to dump properties on the market at a drastically lowered price, which devalues the MBS that had that particular mortgage in its portfolio.  While collection services companies often call before foreclosure occurs, if the person cannot make the payment because they lost their job or their mortgage rate was variable and now has rising beyond a level they can afford, making the phone ring off the hook with collections calls is not going to change anything.  This is an issue affecting many people and it is starting to be felt in the market as a whole.