The future of mortgage debit cards?

[DW Simpson]

http://www.foreclosurenet.net/foreclosure_resources/news/story.asp?ID=43416

[Salzmann]

I hope this never flies.

There's more to a real estate transaction than establishing the buyer's creditworthiness and giving him/her an appropriate line of credit.

The other half of the equation is the house. Is it overvalued, meaning that the buyer is borrowing 120% of its true market value? Will it need repairs in the near future that the buyer can't afford to make? Is the heat supplied by oil in underground storage tanks? A "debit card" would let the borrower close the transaction with no input from the lender in these situations.

But then banks have done dumb things akready- they might fall for this.