Whose Fault Is This?

what ever happened to personal responsibility! People have become victims in every aspect of their pitiful lives. suck it up and grow up you whiners

what ever happened to personal responsibility! People have become victims in every aspect of their pitiful lives. suck it up and grow up you whiners

I still hear no one placing any blame on the consumer. When rates dipped to "40 year lows", how many consumers lowered their payment on the home they lived in versus how many that bought more house? They saw what they could get for the same payment and liked it. Then they saw how much more house they could get for just a few hundred dollars more per month, and liked it even more. I bet their friends were so jealous.

I saw on the news tonight the average American has 9 credit cards. They interviewed a couple that said the $20,000 in debt keeps them from doing what they want to do. It sounds like they did $20k worth of things they wanted. Accountability is a dwindling trait anymore.

Caveat emptor. Buyer beware. A person old enough to buy a house has to be sophisticated enough to exercise due diligence. "I didn't know..." "They didn't tell me..." "I just needed a bigger place.." These and a million similar comments you read everday are what a child might make, not a well-educated adult in the strongest and richest nation the world has ever seen. No one gives me back the money I've shelled out on bad business deals over the years, but I've picked up the pieces, learned from my mistakes, and forged ahead. No one owes you or me a thing.

It is hard to believe that adults - who should know better - belived all the garbage associated with int. only and other low payment setups. At some time you have to pay the piper! Perhaps--- those that really did not know and only have one loan against their primary residence need some help. But that should come from the mortage industry that created the mess, not the Fed. Govt. and utimately the taxpayer. Sheezz, if you bail out all the speculators as well than why not pass on help to those of us who do OR did act responsibility and bought within our means/budget and yet because of this boondoggle have lost 100 of thousands in value in such a short time? Who is reimbursuing us for the hefty downpayments that we took out of SAVINGS to finance our dream(s). If the FED does a bailout then they should just as well provide a tax break to those of us who play by the rules and realize that a house is more than a get rich quick scheme, but a home to reside in. Sorry I do not have any sympathy for someone having to give up items not of neccessity. A home is a necessity, yet to have all the equity that you placed into it, at closing, vanish within a few short months is a hard pill to swallow and the blame lies with the housing industry, not the homeowner. However if I had the annual income --or better yet-- the Golden parachutes that have been discussed in this article, perhaps this would not be an issue at all.

Just wondering. If, instead of firing Mozilo, BofA just demoted him to the mailroom with a minimum-wage salary, couldn't they avoid the severance package? Clearly, he was no longer capable of responsibly doing his job, so a demotion is certainly in order. If he doesn't like it, he can quit. No severance needed. This just seems so obvious to me, I can't figure out why it isn't done except that the new CEO wouldn't want it done to him., but it cedrtainly would be much better for shareholders.

Too bad the crooks...oops....individuals in the mortgage industry cant send their kids to ballet and horseback riding lessons. When will the insanity stop? I mean what is this world coming to?

One giant ponzi scheme.....fist in first out make the money; last in last out pay for it all..........Construction companies making gigantic profits and providing full employment, mortage brokers making 2-3K a day.....hedge funds showing big returns.........not to mention the bank points, realtor commissions, escrow fees, appraiser fees, pre-pay penalties and a host of other leeches making money on paper. Offering "Americas dream" for no money down was just too good for the uneducated to pass up....That's the reason we have banking laws and regulations to prevent systematic abuses of the system. This is what to expect when unleash unregulated capitalism on an uneducated public.

Most of the comments provided here offer much to be learned from. Although many of the comments are a response to another's comments made, they both appear to be right. Mortgage lending is much like any other profession, it provides a service that in return for a fee, improves the lifestyle of the client/customer. Many in the mortgage lending industry approached their clients with the insensitive attitude of "I will never see them again, or never put a face to their client(s) since many deals were done via email/phone/fax/mail. This impersonates the deal and may I add accountability. Why is the personal element important? Because, when a doctor sees the patient before surgery, he understands a soul lies in his or her hands. Many mortgage lenders did not care about this element and still don't. Instead, they just collected paystubs/w-2s and a bank statement that looked good that month because it just happened to be tax return time, not taking into consideration this person gets layed off regularly and lives from month to month and on a prayer. The mortgage professionals job is to make a face-to-face interview with the client and determine if this person is not only qualified, but to also determine if this person is financially established enough to make payments on a house, not to mention the up keep that can unexpected arise. Buy a home is a big, big deal. It is the place families are raised, relatives meet on holidays, and identities are established. For one to lose thier house is one of the most degrading experiences for parents and children. It often leads to divorce, drug abuse and so forth. In addition, it affects the extended family who may have to take in the family for a while as well as pets that may be abandoned. I believe the problem we have on our hands today is a prime example of what happends when a profession is reduced to fast food service. Alot of thought, research, interviewing, and verification must go into the process because a wrong decision can determine the direction of peoples lives, an economy and perhaps even the country. A few failed ventures are expected in the industry, but a collosal of foreclosures will be devastating. -From a mortgage loan professional who has been in the business for 11 years.

one giant ponzi scheme.....first in first out make the money, last in last out have an empty basket.....everyone saw it coming but no one could stop the train.....construction companies providing full employment and making gigantic profits, mortgage brokers making 2-3k a day, investors seeing huge returns in their hege funds and the unsophistacted consumer getting his lifes dream for "no money down".......Greenspan's legacy.

It is easy to blame others, but all of these "victims" need to take responsibility too. Owning a home is one of the most critical financial decision people will make, yet it was taken so lightly. Homeowners are to blame for not understanding the terms and conditions and the mortgage industry is at fault for preying upon this stupidity and offering credit to high-risk clients. The fact that some mortgage lenders didn't even confirm applicant's salaries and work history is incredible to me. It amazed me when fresh-out-of-college coworkers got big, interest only loans without any credit history. They never once believed that this bubble would burst, just like the dot.coms. It is really difficult to feel bad for anyone that got involved in this mess.

Don't borrower what you can't afford. No more than 45% of your gross pay should be for debts! Period you moron, now you want the banks to forgive past due amts and have the Fed's bail you out....Losers

occums razor says the fault lies with the fed.

thoguhts??