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No, you're obligated to the bank

September 14, 2008

Regarding "They get a loan, we pay the price," Consumer Confidential, Sept. 10:

Allen Morgan puts a little less than 10% down, then adds at least $55,000 more to the purchase price of the house, then finds another one that's cheaper because it's already in foreclosure, and then has the chutzpah to say, "But it's not me. [The banks] were obligated to take care of me."

Funny, I don't remember that clause in the loan agreement that I signed when we purchased our house. From what I remember, he -- and we -- are obligated to the bank.

George Ronay



Great article, and good to see someone look at the other side of this.

Borrowers have been living high off the hog living in dream homes they can't afford, refinancing to purchase cars, invest in second homes and generally enjoying life by borrowing over their ability to repay.

Many with low-interest-only loans have lower mortgage payments than market rents. Why should sensible taxpaying individuals, who did not enjoy the benefits of over-leveraging home equity, help bail out these people?

Ed Skebe

Manhattan Beach

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