Real estate blues

Re “More Homeowners Going Into Default,” Oct. 19

It does not take a financial wizard to understand the collusion that has been occurring in real estate and related lending institutions. A great plan for huge profits for everyone except young families and other first-time home buyers: Lend out enormous amounts of money, which allow housing prices to soar, then wait for rising interest rates or the almost inevitable economic exhaustion by the buyer. Before long, the house is returned to the lending institution and the real estate market, to be sold all over again. If loan approval were based on solid standards of income and ability to pay, house prices could not have risen to their current levels.

NANCY ALLEN

Northridge

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Re “Weigh your anchor,” Opinion, Oct. 20

Barry Schwartz has written about sellers who want a higher rather than a lower price for a house. While making the point that sellers for various reasons decide at what price they want to sell (an anchor), Schwartz portrays real estate agents only as self-serving individuals who are looking out for their own interests in the manner by which they solicit listings and offers from their clients. I think that Schwartz should revisit that thought. As a Realtor, I object to his references to agents that seem to question all real estate professionals. Perhaps he is an example of being ill-served by an anchor of his own making.

JULIA HUNTSMAN

Long Beach