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Decision About Paying Loan Is a Business One

November 13, 1994

After having read "Her Mortgage Check Won't Be in the Mail" (Oct. 16) and the subsequent letters pointed at the piece (Oct. 30), I could not resist writing.

In this time of economic chaos for many in our community, tough decisions with property are simply business ones.

With Southern California property prices at the current depressed level, we are talking of actual cash losses of $50,000 to $100,000 for most of us buyers just for the down payment. If I am going to pay $2,500 a month for five more years just for my home value to maybe get close to what I paid for it three years ago, I think I can forgo the pleasure of making my lender and various others in the real estate community more wealthy in the process.

After all, it is not my lender, nor my real estate agent, who is losing all this money. Let's face it, people: No matter how bad of a mistake we "normal" folks make, the lender and real estate "professionals" make a profit whether we win or lose with our property. That is a fact.

How often do you hear of a real estate person offering to accept a 0% commission because they sold you a house that declined in value 25% or more after they sold it to you one year ago? How about the lenders? Ever hear of them offering incentives to help out the values in the community?

Of course not. It is simply business, and for that reason, all of us in "upside down" loan situations should consider it in the same manner: simply business. There is neither a reason to feel guilty, nor one for others to lay moral blame.


Redondo Beach

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