“My dear friend if it was impossible to determie home vaues no one could buy or sell and no one would realize their house value has dropped below the mortgage amount, market appraisals are perfectly commonplace.”
You are insane. The value of a house is the price it will sell for. An appraisal is a guess. Taking a mortgage off a lenders books????!!!! Do you know what you are saying???
Yes, I know what I am saying so please listen for a minute. The whole point of the “bail out” was to take bad loans off lenders’ books, and off the books of companies that invested in the mortgages.
All McCain was saying, and which the bail out bill has already authorized, is to take some of the bad mortgages directly from the homeowners. The lenders get paid off to whatever extent the bail out would have paid them off anyway. The homeowner gets a new mortgage for the current value of the home.
Further, McCain has not called for spending $300 B on this. He supports using SOME of the bailout fund for this. The $300B is someone’s calculation of what it would cost to buy up every bad mortgage and eat the loss.
As for appraisals, they are based on the market. There would be no housing market without them.