No blame laid on the banks.

[Jackdog]

I just wanted to post this. I read daily about people losing their homes because they bought their house during the boom and are now upside and the banks won't work with them. The majority of Americans that post comments on these articles blame the borrower. I don't get that. Yes, they made a mistake. Do I believe that every single one of them had the intention of ripping off the bank No.

All of the comments I read on this in my local paper or on internet. The blame is all put on the borrower and never the creditor. If I started a business and decided to run tabs for certain customers I knew would probably never be able to pay me back I'd be labeled an idiot. The banks do it and they received billions in bailout money and everyone blames the consumer for living "beyond their means" What about loaning beyond your means.

They tell Joe America get a second or third job. Sacrifice everything you have in your life to repay that debt. Work and then work some more. Forget your family and friends get another job you have debt to pay! I will never understand how most of society blames the borrower and never the banks. The same banks that are currently screwing them over with interest rates as well.

[BKOnce]

I throw blame on both parties : Lender (1) + Borrower (1) = Two times errors (2) !!

[flyinbroke]

I just watched Saw VI. Guess who the first "victims" were....bankers. I enjoyed it immensely.

[sofarsogood2]

I agree Jackdog. Everyone is quick to blame the unsophisticated borrower. What kind of government allows banks to offer negative amortization mortgages to the regular Joes?

Or interest only mortgages?

Or rapidly rising interest rates that double the borrowers payments in a few years?

These types of loans shouldn't be available to the general public. People were set up to fail. Why is it legal to set up someone to fail, insure a bet that they will, and make money off the failure and the foreclosure.

I loathe people who take pleasure in the suffering of others, and that includes posters who blame the victims.

I believe it is called Narcissism- Characterised by a pervasive pattern of grandiosity and self-importance, need for admiration, and lack of empathy. People with narcissistic personality disorder overestimate their abilities and inflate their accomplishments, often appearing boastful and pretentious, whilst correspondingly underestimating and devaluing the achievements and accomplishments of others.They are also oblivious to the hurtfulness of their behaviour or remarks, and show an emotional coldness. People with narcissistic personality disorder also have difficulty recognizing the needs and feelings of others, and are dismissive, contemptuous and impatient when others share or discuss their concerns or problems.

Sounds like alot of the "bully" posters, doesn't it?

[shark66]

I don't think that government can (or should attempt to) distribute common sense amongst people...

One should never sign anything - let alone a contract - that they don't fully understand. Period.

If one lacks understanding of how the system works, they should look for legal representation in the given field. Period.

When we were getting our second mortgage, there were numerous offerings with majority being "interest only" deals, and adjustable-rate HELOCs. I said "thanks but no thanks" to each and every one of them, or "go see where you gotta go" if they kept on being persistent.

With all of that said, I can hardly be considered an expert when it comes to finances, or I wouldn't be posting here. But if something looks like a dead fish and smells like a dead fish...you'll have some trouble convincing me that it's a flying pink elephant wearing sunglasses...

My $0.02 only...

[mtngirl47]

The banks have certainly been unconscionable...George Bailey doesn't work there any more!

I have decided that when my bk is all over, I will never deal with a "big" bank again! When I opened new accounts before bk I chose a local, small bank...I have to drive a little farther to make deposits, but they have electronic banking and a debit card and they already recognize me when I come in the door!

[sofarsogood2]

Shark-
I believe governments exist and are empowered by the people to protect the people.
Whether protection is required in the form of armament or laws- makes no difference.
Whether the threat comes from within or outside the border- makes no difference.
Whether you can afford an attorney or not- makes no difference.
Whether you are a Harvard law grad, or have an IQ of twelve- makes no difference.

These are the values this country was founded on, IMO.

Note your over usage of the term "one"- a bit pretentious, don't you think?
You might want to reread my post about narcissism.

[shark66]

@sofarsogood2:

You and I have different understanding of what the role of government should be. Let's leave it as that, and agree to disagree.

If one believes that they can afford a mortgage, they most certainly can afford an attorney to ensure that whatever they're signing is in their best interest.

Ignorance is not an excuse.

[flyinbroke]

My issue is with the concept of contract law. I signed contracts for a CC at a smaller bank, bank gets swallowed by a Too Big To Fail Bank, contract can be changed willy nilly just because original bank is now in the belly of TBTF Bank. Suddenly, the contract you thought you signed is dead but now there is another (that of course they don't send) and the terms you thought you had flew right out the window. That 7 percent fixed for life? Whoops, TBTF doesn't play that way...it is now 19 percent variable...and we can vary it however we feel like it so you never get paid down.

Sorry, but the banks have completely abused this...and I think it is ironic when they scream "you signed a contract." Yeah, but I never signed one WITH YOU.

[BCA2009]

There should be just one law/regulation regarding making loans and extending credit:

That the only recourse the lender has upon default is to take back the collateral and report it to the credit reporting agencies.

If this were the law, lenders would only make good loans to people who were qualified. And keeping good credit would be the only way to get any loan.

The economy would not be in the shape it is in if that rule was in effect.

[flyinbroke]

There should be just one law/regulation regarding making loans and extending credit:

That the only recourse the lender has upon default is to take back the collateral and report it to the credit reporting agencies.

If this were the law, lenders would only make good loans to people who were qualified. And keeping good credit would be the only way to get any loan.

The economy would not be in the shape it is in if that rule was in effect.

It would not work as is, either. Most companies (including the lenders these days) are built on accounting smoke and mirrors and would fall flat if expected to maintain a good credit profile.