Re: eBay for loans
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if they were to allow that, what would stop people from a) getting a loan b) not making payments for a while c) getting their friends to buy out the loans at a cheap rate. i'm sure it would be illegal and all, but is there really anything you can do about it?
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This isn't the way loan re-selling works. If your mortgage gets sold, your rate stays the same. The payments just go to a different lender. Same loan, new owner. The buyer of the loan just pays some multiple of "par" value to buy the loan. For example, if you are deemed lower risk, your loan might be sold for $1.20/outstanding dollar. Your payments don't change but the new owner's rate of return is less and the previous owner made a profit.
Still though, like most things, it could be illegally taken advantage of.
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