Charlotte Real Estate, Foreclosures, Short Sales

A team of ten state securities regulators drove to the St. Louis headquarters of Wachovia Securities  asking for documents  and conducting interviews about Wachovia's sales and marketing of auction rate securities.  The states represented are  Missouri, Illinois, New Jersey, Pennsylvania and other states, all of which are part of a task force led by Massachusetts.

What are Auction Rate Securities?

Auction rate securities are a debt instrument with a long-term nominal maturity.  The interest rate is reset through a dutch auction.   A Dutch auction is a type of auction where the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined reserve price.

Due to the subprime mess, investors and other individuals, The $330 billion ARS market froze during the credit crunch.  Many were unable to access their money and sell their securities.  Some securities are tied-up in subprime mortgage paper and has lost much of it's value. 

Last month, Massachussetts sued units of investment bank UBS.  The suit alleges that UBS representatives told investors that the securities "were safe, liquid 'cash alternatives when UBS knew they were not". 

Behind on a Wachovia Mortgage?

If for any reason you are behind on an IndyMac or Wachovia mortgage,  please keep paying your mortgage.  Some consumers are taking money out of their accounts and are fearful of the worst.  Wachovia mortgages are still being funded.  Wachovia short sales are still being negotiated.  Charlotte real estate is still great to buy with a loan funded by Wachovia mortgage!