Editor,
If the value of a home decreases for a homeowner because the housing market is depressed, then the value of the mortgage on that home should decrease for the bank that holds the mortgage.
Why? Because banks have no problem tying the interest rate on a mortgage to prevailing Federal Reserve lending rates. In variable rate mortgages, which are one of the biggest scams banks have invented to steal from borrowers, a mortgagee doesn't even know what their payment will be 6 months from now.
The same logic should apply to banks. Everybody wins together. Everybody loses together. Not the way it is now for the banks: heads I win, tails you lose.
Re: "Foreclosures Grind On" 8/20/2010()
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- Bill Appledorf
- I like the way birds tell each other when someone is approaching, how briefly they swoop in to feed on berries in the wild, how they fly away as fast as they possibly can after pecking off a morsel or two, and how big the creek behind where I am staying gets when it's been raining hard for a few days.
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