The mortgage measure is the latest effort by the bankers to keep from
being stuck with properties that are worth less than they loaned to
homeowners.
Arizona is an "anti-deficiency'' state. Homeowners who end up owning
more than the property is worth are free to walk away without fear that
the lender will come after them for the difference.
That has became a particularly serious problem with the sharp decline
in housing values, with many who bought homes at the peak of the market
finding themselves "upside down'' on their mortgages.
Comment by:
William1950 (#019107) Entered on: 2009-11-18 16:42:10
Housing, home values have risen, inflated with out reason for thirty years. The reason for this was to boost banks bottom line, ie...if you hold a hundred thousand home loans that become more valuable every year and double every ten years your books look great. That was the great banking/house bubble.
The way to even the playing field for home owners and to remove the huge black debt they so wanted until last year is simple; cut interest rates by one half and home values by one third. The outcome would be a one time write off for American banks and more real cash, from your job, in your pocket.
But, as you know, Washington would rather have you lose everything then harm a banks false book keeping!
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