Wall Street is turning the tables on the mortgage and foreclosure mess, blaming delinquent homeowners for the mess. The thinking is if home owners had just paid their mortgages, there would have been no problem. What Wall Street doesn’t want to admit is the fact that people were given home loans that the lenders knew they couldn’t pay back. What Wall Street doesn’t want to discuss is the short cuts the mortgage industry has taken to remove delinquent owners from their homes.
In a recent article it states that:
“If you didn’t pay your mortgage, you shouldn’t be in your house. Period. People are getting upset about something that’s just procedural.” said Walter Todd, portfolio manager at Greenwood Capital Associates.
Some said the issue is one of personal responsibility for one’s own debts.
“Everyone’s responsible for following the law. If we all don’t have to pay our mortgage, should we just stop paying taxes, too?” said Anton Schutz, president of Mendon Capital Advisers. “Your mortgage didn’t get to a robo-signer by accident, it’s because you’re not paying.”
Robo-signers is the term for bank employees who signed hundreds of foreclosure documents daily without reviewing them.
The lack of review is why officials investigating the issue say that some homeowners may actually have been unfairly evicted from their homes.
Lawmakers in California, in a letter to federal authorities last week, said reports from thousands of homeowners in their congressional districts show an “apparent pattern” of practices that led to foreclosures that could have been avoided.
This is just another example as how we as a society have lost our way when it comes to responsibility. The lenders are to blame for giving out loans that should have never been written in the first place. The home owners for living in fairy tale land thinking they could make the payments when they ballooned, some doubling in monthly payments.
For those of us who have faithfully made our payments, it makes us feel that we played by the rules, why can’t the banks and those who are delinquent? Don’t get me wrong. I do understand that a lot of those who are delinquent is because of jobs lose. For those I do feel compassion.
What do you think?