The Worst Idea in the World: Securitizing Rental Revenue

It was already going to be a problem for the management companies of these REO-to-rental units to have no community involvement; if they can securitize the payments and get sure revenue no matter what happens at their properties, they have even more of a reason to abandon them and act as absentee slumlords. This could also lead to all sorts of strong-arm tactics to force tenants to pay their rent that we have previously never seen before, well beyond a simple eviction after a grace period. The potential for abuse is high, because now there will be massive amounts of money on the line. And who will service the rental units for the investors? Servicers for loans haven't exactly covered themselves in glory of late. ...