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Originally Posted by pipepatrol  That would have been nice. It would have been like winning the lottery, a really nice sized lottery.
Ive actually heard of a flight school going bankrupt and reducing all student balances to $0, it would be nice if the balance would also be reduced to $0 if the loan company goes bankrupt... |
Someone else still buys the debt. Your contract to pay is an asset which can be bought and sold. This is why debt is an insidious bee-yotch - someone you don't know owns your arse for x-months.
That's a very small part of this mortgage crisis, you know. Many investors bought in to companies which had financing backed by mortgages because everyone KNEW that you couldn't lose money on a house.
Until they did. And panic sets in....