One of the biggest stories in recent months has been the foreclosure problems and the credit crisis in America. Many people have lost their homes already and more are in danger of the same situation. I myself know five people who are faced with it. I feel bad for all that are involved in this mess, but who is really to blame and who should bear the burden of it all.
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Well, let’s start with the blame. First we have the banks and mortgage companies that came up with the idea of an adjustable fixed mortgage for people with bad credit or not enough for the down payment. It seems that they were not forth coming with all the stipulations in the contract and how it would effect the monthly payments. They knew that they shouldn’t have lowered the standards by which someone qualifies for a loan. The mess that they’re in right now with all the write downs and the price of their shares are because of their own actions, Boo Hoo. Maybe the CEO and the executives should give back all those millions that they received as bonuses back to the company and the shareholders(dream on).
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What about the appraisers that inflated the prices of those homes knowing damn well that their assessment weren’t near the actual value of the house. It’s came out recently that some were being paid “under-the-table” to exaggerate the prices(oh, what a surprise).
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As for the people who applied for those loans. They too need to take some of the blame for not reading the fine print and understanding the break down of the contract. One person I know that is in this situation, actually refinanced over the phone with a mortgage broker. I’ve never signed anything in my life without reading everything or having an attorney go over the papers for me. Don’t get me wrong, I’ve been heavily in debt and had to dig my way out of it myself. I didn’t blame the credit card companies, I blamed myself.
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Now for who should bear the burden of this and help all these people out. Like I said before, I worked on fixing my credit with the help of the CC companies. I work out a plan and stuck to it. When my wife and I bought our house, we didn’t go ahead and buy our “dream home”. We looked around for a house that we would be able to afford the monthly payments. I also did my due diligence on what was involved with having a loan(it was our first and still the home that we purchased). When we paid off our home, we did it with our money. We weren’t able to go to some government agency and say “we cant pay for our home, help us”.
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The only solution to this whole crisis is to have all people who were involved in each loan come back to the table and work out a new contract. Maybe the only involvement the government should have is to oversee and regulate the problem, not throw our tax dollars to other people’s mistake.
Then again, what do I know.
If you have any comments or insight to this post, please do so. I welcome all opinions.

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