If you have very bad credit loan, then the bank can run after the guarantor. Of course, you can’t find someone to do this unless you are very close with that person. It can also wreck your relationship if you are unable to fulfill your obligations.
Ultra Safe, Guaranteed Cash Flows:
Stefano Sola, J.G. Wentworth Chief Investment Officer phrases it like this:
“The driver behind this decision was the underlying investor appetite and demand for long term access to strong, consistent and predictable cash flows”
Consider this: Would you like to get a 3.5% fixed annuity from a company like MetLife whose assets may include this securitized portfolio from J.G. Wentworth, or would you rather get the SAME QUALITY UNDERLYING ASSET yielding 6.5% from me? Seems like an easy decision.