Great watch the cost of foreclosure and managing and rewriting defaults.There is a huge cost to collecting these mtgs from administrative ,repairs ,back taxes insurance and hiring the lawyers to handle claims.Im out of this stock
Obviously you are not well informed of the real deal...on how STD end up buying $2 billion GE properties for 162M + undisclosed debt. (up to 92% Discount!!!)
Do you really believe that is a bad deal for STD?
"...over the weekend, GE announced it's cashing out of its Mexican mortgage business, selling to Spain's Banco Santander (NYSE: STD). The price: less than a dime on the dollar. According to news reports, GE owns a $2 billion portfolio of Mexican mortgages, but it's selling them to Santander at the cut-rate price of $162 million (plus the assumption of unspecified debts).
So depending on the size of the debts, we could be talking about as much as a 92% loss on GE's Mexican investment. Alone, that'd be bad enough, but in fact, GE informs investors that it has already sold off $14 billion worth of assets similar to the Mexican mortgages -- and will liquidate another $17 billion in 2011. If the Mexican deal's discount is at all indicative of the size of the haircut GE's taking to cut bait on these investments, the company could end up recording losses of up to $30 billion over the two years combined."