I agree that lenders aren't always the ones to blame. For the most part, this whole problem is the result of folks just not using their heads, not doing the math, and getting way to overextended. Investors are also a huge factor. It's amazing how many homes are available in metro phoenix and surrounding areas.
It's also amazing, given the current state of things, how you STILL hear adds on the radio trying to sell you easy money via refi.
Anyways, I advise people to check out the book "Foreclosed Dreams." Just do a google on it. A few people I know are going through foreclosure right now and this book taught me a lot.
I think it's going to be a while before the foreclosure/subprime issue dies down.
Thanks for the comment. It is pretty amazing after you see foreclosures spiking, and the recent Bear Stearns hedge fund heavily invested in subprime that is now worthless -- that companies are still marketing these products. I think one of the problems is that many mortgage brokers only need people to make 3 consecutive payments to get their commission. Then the loan is sold in the secondary market.
Commenting by HaloScan
