U.S. Subprime Auto Loan Losses Reach Highest Level Since the Financial Crisis

Re:U.S. Subprime Auto Loan Losses Reach Highest Level Since ... by ryanmarsh on Monday March 13, 2017 @09:28PM (#13864201)

> mortgages are secured against a physical piece of property that will almost always retain a significant portion of the original value.

REO is incredibly costly and moving a house off the books cannot happen quickly especially in a down market.

Cars are better in that way.

Most people will be upside down in their car loan but there's an international market for cars. It's pretty easy to liquidate a used car and capture some capital in the short term. Try that with a $450,000 McMansion.

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Re:U.S. Subprime Auto Loan Losses Reach Highest Level Since ... by TheSpiceIsLife on Monday March 13, 2017 @09:58PM (#13864357)

Don't they just auction the place with no reserve? That's what I though happened to repossed houses. I could be wrong here.

Chances are someome will take out a new loan with one of the big banks to finance their new purchase. The bank gets to keep all the money already paid in by the original lender anyway.

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Re:U.S. Subprime Auto Loan Losses Reach Highest Level Since ... by wheelerwj on Tuesday March 14, 2017 @08:00AM (#13866744)

you don't have to liquidate a 450k mcmansion, you just have to wait.

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