Foreclosure Mess Created By Greed

It’s a disaster, no its not. We will insure it, no we won’t. Or wait a minute, yes we will. The Courts can’t seem to make up their minds. The states seem to disagree, some say the physical possession of the mortgage note is imperative, others not. But everyone agrees that both not being able to foreclose properties and removing homeowners from their homes is a mess.

We are paying for the poor quality work that many performed over the BIG years of mortgage lending.  Lenders lending to those who did not qualify; lender lending to those who could not afford the payments; lenders lending to those who were told that their houses would be worth more in the future and they could just continue to refinance… Which many did, and they are now seriously underwater.

We could blame all this on the Lending industry.  And we could believe that it will all be better because now (belatedly) the government is trying to regulate mortgage bankers with background checks, testing and licensing. But in the BIG picture, isn’t it the consumer who was negligent in making good decisions. Did they really need to refinance out their equity to get that new TV and computer equipment they wanted? You might way that they were “suckered into it” but where do we draw the line for personal responsibility? After all, many of us were tempted, but not all of us succumbed. And now we are all paying the price.