Borrowers must meet obligations

Re: "Bernanke appeals to mortgage lenders".

Mr. Bernanke, your comment about lowering the principal balance on those mortgage loans in foreclosure or near foreclosure is down right unacceptable. These borrowers entered into debt with their eyes open.

Let's not be too hasty. Before you jump in over your head with your idea perhaps there is another alternative. Before I continue I must admit that getting the lenders involved is a great idea. After all, they are the perpetrators of this fiasco.

What about forgiving the interest on these loans and just collect the principal amount of the debt until the borrower is in a better financial position to start repaying the principal plus interest? Or, let the borrower pay back a portion of the principal like 90 percent, or 80 percent, or whatever the borrower and lender can agree. Under this plan, the lender will be paid a portion of what they are owed and if they are prudent in their future lending policies and practices and their investments they may build up their cash reserves. The bank will not have to take a loss as they would under your plan.

Come on Mr. Bernanke, let's not throw in the towel without a fight. Let's not just bail these borrowers out of their obligation to repay these loans according to the terms they agreed to at the inception of the loan. Think about it? If you have any questions call me, we can do lunch. I have some other ideas you may find appealing.

John Tomei

Palatine