But the lender also needs to take responsibility for the loans they make. Part of being a lender is exercising good judgement about loans they write. Every lender gets offered bad loans-- it is part of their business to make sure that they are prudent with the money they lend out.
You seem to have more sympathy for the lenders than I think is warrented. If they're so dumb that they are going to lend money to people with no ability to pay it back, and to lend more to them than their house is worth, they deserve to go out of business.
Certainly borrowers that committed fraud to get their loans should be punished, but for the most part, these people were bad risks from the start, and now some of those people are going to default. When you lend money to people on the edge of financial ruin, you can't start crying when some of them fail to pay you back.
 Quote:
Originally Posted by Jay_Gatsby
I can, but many thanks for the support. Part of the issue is that some folks see that people who have lost their homes due to poor financial decisions have suffered enough. Although I sympathize with anyone who has lost the roof over their head (especially where children are involved), no one seems to have focused on the fact that the mortgage holder (lender) is still out the money that was borrowed. Many of us want to consider such lenders to be nameless, faceless, greedy corporations, but where do you think such corporations get their money to make loans?
Ultimately from you and me. 
We will end up paying for the folly of people who shouldn't have bought homes in the first place, took out home equity loans to pay for depreciating assets such as cars, vacations, big screen TVs, etc..., or financed the purchase of supposedly profitable businesses. A home is not a piggy bank. If you treat it like one, you run the risk of being in the precarious position that so many defaulting homeowners find themselves today. |
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