Why RMC instead of Private Investors?
Free-market dynamics will take too long and cause too much pain; the market can remain irrational for a long time. RMC will facilitate an orderly wind-down process which ensures that the community at large does not suffer. Specifically: • The foreclosure process is long and costly. There are fixed costs associated with foreclosure, which often eat up the principal recovered, especially for lower end housing. Note-holders are better served in a low cost transaction with similar principal recovery. • The length of the foreclosure process will keep a lot of unsold inventory on the market depressing the overall sentiment towards the housing market. RMC can guarantee that the properties move off the market quickly. • Distress sales will likely happen at fire-sale price, which will depress home-values and accelerate the downward negative spiral in asset prices. • Private investors will cherry-pick only the most desirable properties leaving behind a big overhang of unsold foreclosed inventory
