Lender Not to Blame for Market Decline

Glenn Buchanan of Sherman Oaks (“Lender Shares Blame,” Letters, Jan. 10) says that in the event that the market value of a property has declined, the lender should share the loss with the borrower.

Using Mr. Buchanan’s logic, it also follows that in the event the market value of the property has increased, the lender should also share in the price appreciation.

Mr. Buchanan should attempt to convince his stockbroker of this novel idea, and why has he left out the Realtor?

This seems to be part of the current American attempt to find someone else to blame for one’s own misfortune.

In purchasing real estate, one is making an investment. When borrowing to enable one to make the purchase, the lender does not become an investor. The borrower, that is the owner, shoulders the risk of loss as well as the prospect of a profit. An appraisal is nothing more than a tool with which to facilitate the transaction.

In this connection, it is interesting to read of borrowers who are unhappy because their lender is reluctant to agree to an interest rate reduction when market rates go down. Would those same people be willing to agree to an interest rate increase when market rates go up? I don’t think so.

All, including Mr. Buchanan, should review the language of the promissory note which reads “I promise to pay. . . .”

MARK A. CARR

San Clemente