Here is a rather polite mathematical observation on the state of our nations debate... for those that you read who are in danger of losing a home in the “mortgage crisis”…
Why is it that when we buy a home appraised at fair market value for $336,000 and take a $150,000 mortgage, we own 55% of the home and the bank then owns 45%...
The economy and the market fails and falls and the home is then ...appraised at $226,000 and you now own 33% of the home and the bank now owns 67%... the loan to value does not adjust as your equity to value adjusts... upside?
Consequentially Americans need to refinance to lower their payments so they will not fall into foreclosure...
For the bank who has no risk in the fall of the economy has a preferred position now in your home and has profited on the fall of the economy and your home’s value as they now have a larger % of ownership...
Never mind that you got there because of the banks and their practices... never mind the government felt they were too big to fail and decided to give them money to protect their positions while you have gone unprotected and absorb the loss... pay the additional taxes to cover the investment to save the banks while they have profited from the transaction... both ways...
Such a preferred position... and time for a bonus... record profits... based on the demise of so many Americans...
or dare we say ... "American dream'...
Vote much?
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