[Marxism] Chris Bray on foreclosures

dave.walters at comcast.net dave.walters at comcast.net
Sun Aug 12 21:46:39 MDT 2007


Bray write: 
"the bank sells your $500,000 
house for $375,000.
"You're out of a home -- and you're still carrying $75,000 in 
interest-bearing debt."

How about "wrong". I've had half a dozen different types of mortgages in my life and none 
of them made the borrower responsible for an unpaid part of a forclosure sale. None of them. The 
whole basis of a *secured* loan, which all mortgages are based on, is that once the property 
changes hand after forclosure is finished it ends all legal relationship between the barrower and 
the lender. That's the whole point of forclosure. If this wasn't the case, then people would be simply 
going bankrupt and keeping the property with little payment involved after that. This is why, in large 
part, banks HATE forclosing because they end up losing money.

David


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