YOU ARE HERE: LAT HomeCollections

Less forgiving about mortgages

July 05, 2009

Re: Tom Petruno's markets column "Mortgage forgiveness may be next," June 27:

I agree that the real estate market would be better off with "as much owner-occupied housing as possible."

However, I do not believe that the current homeowners -- those who took out mortgages they knew they couldn't afford and those who bought for a quick profit -- should be those owners.

Let new buyers, those who played by the rules and are still renting, move in and start off in a "positive net-equity position." A 20% down payment would ensure positive equity from the start. Rewarding current homeowners is not right.

Bill Wallace



The assumption in the column is that homeowners expect to use their home equity as a checking account. A home investment is not a money-market account.

Someone needs to explain to homeowners that the value of their home is meaningless until they decide to sell it -- and if they wait a few years, a handsome profit will be made.

Doug List


Los Angeles Times Articles