Already defaulted- as in the renter/occupiers have already STOPPED PAYING THE BILLS!
Nothing like new derivatives gambling over how much copper will be left in a vacant house after 2 years.
The biggest kicker is The Morgue bought this sh*t from European banks!
Perhaps The Fed ordered this as a backdoor bailout of distressed European banks?
From Dow Jones:
JP. Morgan Chase & Co. (JPM) next year plans to issue the first U.S. commercial mortgage-backed securities supported by defaulted loans since the 1990s as it revives a practice that regulators used to extricate the nation from the savings-and-loan crisis.
The investment bank has approached rating agencies with two pools of distressed loans that it acquired from European banks and other financial institutions, according to people familiar with the matter.