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To: CaptainMorgantown
One way to deal with the rising mortgage rates is to make home loans "assumable" again.

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20 posted on 10/18/2008 4:50:47 PM PDT by spectre (Spectre's wife (Pray for our Nation)
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To: spectre
One way to deal with the rising mortgage rates is to make home loans "assumable" again.

There are many difficulties with that. A lender needs to be able to refuse a loan to someone who he judges not to be creditworthy. If a person could sell his house and, without the lender's consent, have the loan taken over by someone who won't pay it, lending would be a lot more risky; indeed, it would pose the type of moral-hazard risk that would be anathema to prudent lenders.

34 posted on 10/18/2008 7:32:01 PM PDT by supercat
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