The vendors eager to finance solar on your house are riding high. But the financing seems to be tightening up. How do you reposess a solar system off a house? With some difficulty.
Solar City, the shares soaring, is turning to privately placed asset-backed securities, as just reported in the WSJ: " > SolarCity said Monday that it intends to privately place $54 million of > securities backed by a pool of solar-power systems, leases and electricity > contracts." ... > Asset-backed securities are widely used in the home-mortgage and auto-loan > markets. Banks or other investors who lend consumers the money for home or > auto purchases bundle those loans together and issue debt to investors, using > the homes and autos as collateral. The debt is paid off using the borrowers' > monthly payments. You can't just send the Repo-Man out to drive the car away. You'd need to send a crew out, get on top of the delinquent's roof, be sure to not electrocute anyone, and not leave leaks that might result in law suits. No money down solar is riding high at the moment. Will it continue? Forever? I guess Goldman Sachs feels it has all the exposure to Solar City debt it wants at the moment, thank you very much. The WSJ story is behind a firewall. The URL is: http://online.wsj.com/news/articles/SB10001424052702303661404579178250369495512?mod=WSJ_hps_MIDDLENexttoWhatsNewsThird Gene _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
