Debt vultures saving troubled households

So-called distressed debt “vultures” have been circling troubled mortgage-holders in the post-housing bubble era — and, in some cases, saving them, according to the Wall Street Journal. Investment funds, like Selene Residential Mortgage Opportunity, run by famed mortgage-bond trader Lewis Ranieri, are often more nimble than large financial institutions, experts say, allowing them to buy up troubled home loans and cut deals with the mortgage-holders. With banks eager to unload tenuous mortgages in the shaky market, Ranieri said he’s able to acquire the loans for far less than the remaining balance due, giving him more flexibility to work with troubled homeowners. “Every case is individual,” Ranieri said. “There’s no template.” [WSJ]