Treat responsible homeowners fairly

Graham H. Tye, North Las Vegas

Saturday, Oct. 25, 2008 | 2:03 a.m.

I’d like to respond to Jim Weber’s Tuesday letter to the editor, headlined “Keep owners in homes to help lenders, too.” His example in summary:

• Take a $200,000 mortgage on a house now valued at $150,000. The owner is unable to afford payments.

• The bank agrees to a new $150,000 mortgage. If the home appreciates in value in later years, the bank and the homeowner share equity.

It’s a great idea as long as it is applied to all mortgage holders. For instance:

• I have a $200,000 mortgage on a house now valued as $150,000. I can afford to make payments (because I didn’t screw up and overcommit).

• The bank agrees to a new $150,000 mortgage. If the home appreciates in value in later years, the bank and I share equity.

• The money I save on the reduced mortgage payments can be used to replace the life savings I’ve lost as a result of the subprime mortgage-driven financial meltdown.

Seems fair to me.