From The Huffington Post, 10-29-10
By Shahien Nasiripour
"And the first thing I'd ask them is, 'It non-recourse debt?' And if it's non-recourse debt, I have an answer. Then if they say -- then I would ask them, if it's a recourse debt, and they say, 'Yes, it's recourse, but I'm broke.' Okay. Now we have the facts.
"In the second lien mortgage, what you should do is write them down to zero," McWatters continued. "You can't write them down to zero -- they're going to extort something out of you, right? They have a seat at the table. [So] you give them 10 cents on the dollar, you give them 20 cents on the dollar, but you make them happy. You give them an equity kicker. You write [the mortgage] down.