wrote in message
t...
On Fri, 09 Jan 2009 22:18:18 -0500, BAR wrote:


Racist and illegal? It was based upon risk analysis. Why would I want to
lend money to people who were most likely not going to pay it back. And,
if I did have to foreclose just before getting the sheriff to evict them
they would trash the place. Where is my motivation to lend money in
those areas?

Yup, racist and illegal. When I find the link I'll post it, but those
"redlined" areas have reasonably low default rates. Where most of the
problems have arisen, is the more affluent borrower who over extended
thinking of their home as an investment, not as a home.


those redlined areas had low default rates and the lender did due diligence
and loaned on what the house was really worth, and if the borrower could
afford the payments.

As to NOYB the guy in Florida, he may lose the house if he can not
refinance, but he bought the house early enough before a lot if the price
inflation and he got to write off 35% of his payment. Probably cheaper than
renting a house. The taxpayers subsidized his renting the house. May owe
taxes on the unpaid part of the loan if foreclosed. Do not know the rules
on that. Credit cards, they write down the balance owed, and you get a 1099
for the amount written down. Ordinary income.