For years, I have been putting the lion’s share of the blame on the lenders (and their associates), as they well knew these loans would never be paid back. I defended the borrowers, as many of these people really were naive (and painfully STUPID!!!! — yes, they were), and had little experience with the mortgage industry.
All that being said, it was never my impression that FBs should be kept in the banks’ houses, but that **a most generous GIFT to them** would be a non-recourse loan, where the bank couldn’t go after them if they foreclosed on them.
They should also receive a negative mark on their credit reports because they DID default on a **very large** loan. People, like many Piggs here, have worked hard to stay out of debt and made many sacrifices that the FBs refused to make, and our credit reports should reflect the vast differences between these very different types of borrowers. Seriously, these idiots (yes, they are IDIOTS), couldn’t figure out that $50K per year would not afford a $500K+ house????? What they need, more than anything, is a lesson in finances and personal responsibility.
My family (and many others on these blogs) has been renting for years because we refused to overpay for a shack. We’ve always lived within our means and stayed out of debt.
Please explain why we should have to pay for the over-encumbered idiots to stay in a house that **they could not afford.** If we can live in a rental, so can they. It’s not the end of the world, and would teach them a well-deserved lesson.
If we bail out the specuvestor-idiots, they will be back next year looking for more bailouts. What happens if prices drop more, do we continue to renegotiate their mortgages all the way down?
Who will buy these loans (reworked loans and future mortgages) if they know the govt can come in and change the terms at the drop of a hat?
