Okay, politicians can rail against lenders all they want, as Massachusetts Attorney General Martha Coakley did today. She claims lenders aren’t doing enough for borrowers in trouble because they have not written down the loan balances (reduced the principals) despite the fact that home values have dropped. Well, don’t hold your breath, Martha. When housing values increased, did your lender get to increase the balance of your loan and share in your good fortune? No? Then why do you expect these companies (who are owned by shareholders who are regular folks just like you) to share in the losses created by mindless real estate speculation?

So if you have amortgage in trouble, claiming hardship just because your home value has gone down probably isn’t going to cut it. Not should it. If you want your lender to offer a constructive solution you need to be realistic as well.

This entry was posted on Thursday, September 18th, 2008 at 3:03 pm and is filed under Daily Pick. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.