PW I guess I didn’t illustrate my point well… and yes Counselor did present a clean clear view which he does pretty much in all his posts and yes as you said the foreclosure clause is to protect the lender.
I guess the responsibility that I was trying to allude to is that there is (or should be) an inherent responsibility in home ownership that is not present or needed for simple ownership of assets. I think in order to reform the system to help prevent rampant speculation we need to up the ante for people who want to play.
Should there be any different treatment from Joe imbecile who was awarded a 600k loan on his meager 50k salary and he has to walk because of his loan resetting verses Shiela the educated homeowner who has an 600k loan and she is going to walk simply because she is tired of paying money for a depreciating asset?
No there should be no treatment. However, if Joe would have known that he will FOREVER BE A SLAVE to that loan UNLESS he had some major event that prevented him from being able to pay, then perhaps he would have never taken the risk.
I guess what I am trying to say is that I think that real reform would help really keep prices in check but that reform has to be pretty heavy handed in order to wipe out or severely minimize speculation. That the reform is possible through being heavy handed with the buyers.
Lenders will ALWAYS have short memories. I do not think it is reliable that they will remember the licks they take.
