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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

Corona

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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

Glendale

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