By now, it's pretty clear that the government's attempts to prevent foreclosures aren't working as well as hoped. Bank modification programs are doing a little better, but a lot of struggling homeowners are still failing to avoid foreclosure. So how about "vulture" investors? The Wall Street Journal reports on how veteran bond trader, and one of the fathers of securitization, Lewis Ranieri's Selene Residential Mortgage Opportunity Fund and others like it can succeed where others options fail:
As the nation struggles with the worst foreclosure crisis since the 1930s, Mr. Ranieri's investment fund and others like it are emerging as the best hope for the roughly seven million U.S. households behind on their mortgage payments. Nimble, flush and willing to strike deals with borrowers, these funds have an edge over banks and other lenders that can be mired in bureaucracy and hampered by government rules about which loans can be renegotiated and how.
Read the full story at the Wall Street Journal.
We want to hear what you think about this article. Submit a letter to the editor or write to email@example.com.