Monday, December 3, 2007
"Nothing is worse than doing nothing."
I don’t trust this guy, I think he’s putting his banking friends ahead of John Q. Public.
If a struggling young family bought at the peak and is now $70,000 in the hole, the best thing for the young family to do is walk away from the house and rent an apartment. It does not serve the family’s interest to pay the bank back more than the value of the house, even if the interest rates are kept lower than market rates.
If a stupid bank loaned money too much money to a young family at the peak and is now nervous that the young family will walk away, the last thing the bank wants is $70,000 in negative equity, $30,000 in attorney’s fees, and another $30,000 in processing fees.
Qualification: Unless the banks are in worse shape than we think, in which case he may be looking out for the American people.
Posted by Bill at 6:48 PM