---------- Forwarded message ----------
From: barry levine
Date: Mon, Oct 25, 2010 at 11:44 AM
Subject: re: Short Sales Resisted as Foreclosures Are Revived
To: letters@nytimes.com
To the Editor:
From: barry levine
Date: Mon, Oct 25, 2010 at 11:44 AM
Subject: re: Short Sales Resisted as Foreclosures Are Revived
To: letters@nytimes.com
To the Editor:
Our current law requires the bank to choose: either they foreclose and get the house (valued at its last sale price) as an asset, or they allow the short sale and get their principal back. Since banks aren't making a lot of loans recently, they don't need the capital. It serves them better to keep the housing market inflated by claiming that the house is still worth what it brought on the market a couple of years ago. This fiction--that the asset is worth more than anyone is willing to pay for it--has to die for us to return to a healthy housing market and a healthy economy.
Barry Levine
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