Housing

Doctors Give Toxie Two More Months

Toxie, Planet Money's mortgage-filled toxic asset, is near death.

For the second month in a row, we recieved a payment of zero dollars and zero cents.

We bought Toxie for $1,000 earlier this year. Every month, we get a check. It's a small piece of the payments people are making on their mortgages. Those checks have been steadily declining, and so far, we've only received a total of $449.

As Samir Noriega, a partner at NPM Capital Management, explained to us last month, part of the reason Toxie's hurting is that some homeowners in our bond are getting help. Their lenders are giving them loan modifications. These modifications bring down the value of the mortgage payments and when that happens, there isn't enough money left in the monthly pool to pay us.

Our friends at Mission Peak Capital, who helped us buy Toxie, are the closest we get to doctors, and they say she's got about 2 months left. Sniffle...sniffle...

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