| It's all about greed. The homebuyers wanted nicer things then they could afford and the banks wanted to make loans.
The banks figured these people would either figure out a way to pay for the loans later or they would evict them and sell the houses for more money.
The Bush recession knocked the bottom out of all of that and everyone involved is screwed.
The banks can repo the houses but then they are in the real estate market when the market is down and that's not what they do for a living.
The only real choice is for the baks to get with the borrowers and work something out that keeps them in the home and paying for it.
__________________ "The Republican Party has shown beyond all doubt that it holds the U.S. Constitution in total contempt. Today, the Republican Party stands for unaccountable executive power. To re-elect such a party is to murder liberty in America." - Paul Roberts, formerAssistant Secretary of the Treasury in the Reagan Administration earning fame as the "Father of Reaganomics"  |