On Mar 22, 8:55*pm, "Ed Huntress" wrote:
"Wes" wrote in message

...





"Ed Huntress" wrote:

Sure, on a car. Not on a house. You could have asked any broker or banker,
a
year ago, what the chances were you'd get in trouble that way. They'd
laugh
you out of the place.

First, they would tell you what I said above. They they'd tell you that
once
you'd made two or three years of payments, you'd qualify for a fixed-rate
mortgage before the balloon came due on (what they might call) your
"bridge"
loan. Then you could look at all the statistics and see that they're dead
right. Only they weren't, for the first time ever.

Okay, try this. *You buy a new house, the overall market does not go down
but when you go to refinance the banks appraiser notices a crack house
next
door and doesn't think your house's market value is high enough to secure
the loan. *By your logic, the bank should forgive principle since the
house
is not worth far less than when it was originally purchased.

First off, I haven't said what banks should do, or what the government
should do. It's beyond my knowledge and I'm studying the subject right now