JimH wrote:
"D.Duck" wrote in message
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http://tinyurl.com/2cqv7t
In my mind a lot of the blame for the home mortgage crisis belongs
squarely on the shoulders of those that received the loans.

In their quest to get into a home they failed to analyze what
could/would happen when the inevitable rate changes came along.

That doesn't excuse the lenders. "There's a sucker born every minute".

At what point of the deal did the lenders put a gun to the buyers head
and force them to sign?
That's my point, the home buyers must share a lot of the blame for their
decisions.
I realize that.

The lenders played on the consumers ignorance.

Perhaps, but perhaps not.

But if someone is signing for a 6 figure loan without knowing the type of
loan or if the payments fit into their budget I have no sympathy for
them.

The Cleveland Plain Dealer ran a series of stories about a couple of
these poor *victims*. In one case a lady was given $500,000 as an out of
court settlement for the death (drowning) of her son at a church's pool.
She buys a house (cash), a Lexus and then promptly blows the rest of the
money in a short time.

Not having money left she tries to get a loan off the equity in her house
and signs for a loan she could not afford. She loses her house. Poor
lady.

Another example is a guy earning $75,000/year signing into an ARM with
payments at around $800/month on his $130,000 house. Over a short time
the rates went up and his payments jumped to $1,300/month which he said
he could not afford. He eventually lost his house to the lender.

He promptly blamed the lender as he said he did not know what an ARM was.
Doh!

BTW: He also spends $1,200/month on the lottery.
You just keep reinforcing my argument.


Doh, I realize that. What I am also reinforcing is the fact that the banks
should not be blamed at all. You seem to put some blame on them. That is
*my* point.

The banks are selling the loans. They advertise the loans, they entice
and encourage the buyers sign on the dotted line. The banks have some
culpable in the sub-prime problems. They guys who bought the mortgages
are culpable too. Nobody gets away from this without some responsibility.