madasiwannabe

Can the Banking System Handle Huge New Write-Downs?

What about my loan. I put 40% down and have a debt ratio below 20%. Sure I screwed up by living well within my means and paying my bills on time, but my property value has dropped 15% too. That drop is before all of my neighbors get their mortgages slashed and their new deals become my comps. Under the bailout deal it seems like I get to pay twice; first through my tax dollars and then again with the further depreciation of my property value.

What gets me is if we let them default, I lose anyways. The banks will auction off the properties at a huge discount and once again their sales become my comps. Where's the bill that offset my losses when the irresponsible borrowers and lenders get done destroying my future?