AMEN Chris. There is no more to add. You hit the nail on the head.

It's just more of the same from this great country we live in.Nobody wants to take responsibility for their on actions.I just don't see how anybody could sign their future away without knowing what they were getting into.

Personal responsibility, folks. If you actually took time to read the contract, it clearly says the interest rate can rise to XX%. Do not blame other people for your inability to handle your finances. Do not buy more house than you can afford, either. The 'it's not my fault' mentality in this country is sickening. Oh, and the guy from Cailfornia, well...it's California. Not much more I can say about that.

I understand how many people feel.  I am a single mom.  I work days in a construction office.  When the boom went, it was devistating.  I had a mortgage to pay and my hours cut tremendously.  Do you know what I did?  Got a second job.  I cannot blame anyone else for my bills.  I signed the paperwork that I should have figured on if I worked a regular 40 hour work week, I wouldn't be able to afford.  I feel your pain, but I have no sympathy.  Take resposibility for your actions.  If I have to work 4 or 5 jobs to put a roof over my daughters head I will.

Ok, try this one on.  I work for an insurance company.  I get papers faxed in my office all the time, or calls in telling me to make changes from "financial lending companies" .BUT DONT HAVE THE INSURED HOMEOWNERS PERMISSION to make ANY changes.  The the lenders get angry with me when I refuse to make ANY changes or release ANY  information without the insured homeowner call into me at my office to give me verbal permission to make the requested changes. The lender and the banks DO NOT have the right to make changes without the named insured homeowners permission!!  My office is trying to protect the insured homeowner, we make sure they understand all the escrowed, non escrowed changes, what increases the finaincal people are asking us for and what is needed to justify these changes when the insureds call is, then we make sure they wish to proceed with the requested changes.  Financial institutations have been rather demanding and some down right nasty to us for helping out our clients, and helping to protect them and their home.

Most of these  borrowers who are now whining and complaining about losing teir homes and asking the government - and taxpayers, to boot - to bail them out actually didn't put a single cent on these loans.  Most of these loans are 100% financing, stated-income, no closing costs, 3-year ARM loans, which likewise benefited the mortgage brokers and their greedy loan officers.  So, when the loan was closed, the loan officers / mortgage brokers got their huge commissions and the buyers get into their homes they can't afford.  After a few months, the property value goes up because the loan officers hire appraisers who overvalue the property.  The borrower, who just bought the property say a few months back get to refinance and get cash back.  In other words, the borrower never invested any amount and even was able to get CASH BACK from this.  After 3 years, the loan is reset and the borrower cries, "help! we've been fooled."  Oh, come on, now.  The lenders / investors (who bought these repackaged loans from mortgage brokers like Countrywide) were the once who had been duped - \ not the borrowers.  That's why a lot of these foreclosed properties' owners are just able to walk away and abandon ther homes.  See the picture?

Somehow, I think the Clintons were involved.  Ha

I must agree to some extent to defend lenders like countrywide in some areas.  Usurious?  That doesn't make sense, borrowing is like any marketplace, there are many options that will bid down the price, so that any lender pricing significantly above the appropriate risk premium will be cut out of the market.  Confusing loan terms?  Absolutely, and although the lender shares some culpability (I don't think processors and others who interract with customers get enough training)  a portion of the burden does fall on the customer to GET EDUCATED.  Where was the realtor in all this?  Shouldn't working on behalf of the buyer include advising how not to lose the house once you buy it?  But really a portion of the blame falls on local governments who relied on all the bid up property values to calculate their tax assessments.  Because of the huge windfall to the tax coffers based on inflated property values, there was no incentive to provide an accurate assessment.  This just fed a vicious cycle that would not end until the era of cheap money and stupid buyer/investors came to an end.

I am not a smart man... nor do I have a .phd. I have survived in this world on a middle class income, have a savings and a healthy 401k. My wife has not worked outside the home for the past 12 years. I have three boys.

My rules for survival:

1. Make a budget, overestimate all bills.

2. Work off of my base wage, do not include bonuses and overtime into my monthly figures.

3. Live on less than what I earn.

4. Drive an economy car - eat a dose of humble pie.

5. Skip the pool in the back yard.

6. Skip Disney land.

7. Buy low (I mean really low) and sell high.

8. Buy nothing with no money down.

9. Just because everyone else is doing it doesn't make it right.

10. Invest money, but never ever, ever forget that Wall Street is a for profit organization, it is NOT a wealth distribution system.

I feel for anyone who is in a bad financial situation. I hope they are able to look at thier situation and determine what part they played in it so that they can protect themselves in the future.

Good Luck to all!

I was a mortgage underwriter for 28 years and something is missing here.  I told people 5 years before this happened it was coming. Everyone told me I was nuts but I new, the signs were there.

Obviously peoples ignorance is to blame but I have not heard one word about the investors. The investors set the guidelines for which people can be approved for a loan. As a underwriter I watched the guidelines continually relax for years. Even though I knew I was approving a loan that was sure to go delinquent, I had to approve it based on the guidelines set by the investor. It is a federal violation not to approve a loan that qualifies based on the guidelines. Blame the greedy investors.

There is no way a young couple recently graduated with hundreds of thousands in student  loan debt should be buying a house for $500,000. With a combined income of 65,000 there  is no way they can survive. The investors guides require an approval and the federal government back them up.

I became so sickened by the thought I was participating in the demise of young Americans I had to leave the industry and my 30 year career.

For the record Countrywide is one of those investors that contributed to this demise. I also believe parents are responsible for teaching thier children they could have it all without any consideration for possible down times. People no longer buy what they need but rather what they want. What ever happened to starter homes? We were taught to buy what we can afford given out income, savings and security and then as time goes buy you can step up. Now people buy the step up home immediately putting them on the edge of disaster.

The bottom line is, investors like Countrywide are first to blame and the consumers are second with the government bringing up the rear.