First banks create a scheme whereby they give out loans to tax payers who they know full well can't afford the loans. Then they create gambling derivatives from them and sell them to everyone. Then because of their actions they destroy the world economy, they get bailed out by tax payers. Then to keep these zombie banks afloat Freddie and Fannie are forced to buy these bad mortgages from these zombie banks with tax payers' money. Then after crashing the economy and making homes worth less than what these banks loaned out, they take the tax payers' homes away. Then Freddie and Fannie come after the now homeless tax payers for the difference between what the now destroyed value house is worth and what the scheme paid out.

Wouldn't it have been far simpler and more fair to have bailed out the tax payer with their own money so they could have paid the loans? Then the banks and the tax payers would have both been bailed out.

This capitalist system is so corrupt and broken it needs to be taken down and replaced.

and rented back out. Everybody makes $$$ except the taxpayer and the former homeowner.

It's NOT "bad actors" or "greed". THIS is the way the system is set up to act.

What do you think this is, a country that gives a shit about the citizenry? Whoa.

You'e right on all counts, of course, but the evidence is in, and the case is closed that the only reason the houses were built in the first place was to enrich all the pirates waiting on victims to take the cheese.

Yes, the system needs to be replaced. I haven't dealt with a bank since 1978, and I consider myself far better off for it.

It really IS outrageous, isn't it?

Everyone who lost their job, house, whatever groups together and files a lawsuit against Wall Street for crashing the economy.

Holder doesn't seem like he's going to touch it, but millions of Americans could band together and sue for damages, as there are certainly damages.

That's the problem right there. Too busy fighting amongst ourselves blaming poor people, people of color, immigrants, single mothers, non-christians, etc as directed by pundits.

It took him years to save $15,000 and then he buys a $469,000 house and probably had at least a $3000-$3500 a month mortgage payment with taxes, insurance, and PMI mortgaged escrowed in?

That makes complete sense. I wonder why he couldn't make his payments?

It's mainly the banks' fault for easily loaning people way more than they could ever pay back or afford, but you gotta wonder what some of these people were thinking when buying these houses.

I know a school teacher that makes $45k a year and bought a $250,000 house she lives in by herself, she was asking me if I wanted to rent a room because her payment is almost $2000 a month and she only brings home about $3000 so it's tight.

"He had achieved a portion of the American dream, earning nearly six figures."

Unless I am mistaken, that means he was making almost $100k a year before the economy tanked.

$100,000 doesn't go that far at that level. After federal and state taxes, Social Security (he's self employed so he pays the full 12%), and Medicare he was probably taking home $60,000 net.

$40,000 in house payments a year is 2/3 of his net pay. Way out of whack, so he had $20,000 a year left over for a family's food, healthcare, utilities, household maintenance, vehicles, fuel, clothing, etc, etc.

critical statement in my opinion. Peace, Mojo

Many people got loans that had no business doing so because of the loose standards by the banks. If he had been required to have 10 or 20% down like normal times he never would have gotten into that mess and would have like at a more reasonable property.

when work dried up during the initial part of the collapse. They were making good money working construction then no work at all. No income, no house. He may have been able to comfortably afford his house till the bottom fell out. It is hard to say.

The people processing his loan were probably telling him "nooo problem, how much do ya want?" I'd like to see the loss split 50/50 between him and the bank. It took 2 parties to strike the loan deal.

He may have been making six figures but I'm going to guess that he didn't make much more than 100 grand and he didn't make it consistently over many years. They received the foreclosure notice 1 year after buying the house. That means they only made 9 or 10 payments and/or had a history of late payments. They must not of had much in savings.

jesusonasurfboard, WTF does she eat? and how does she pay the utilities?

I noticed the 15K down on a half a million house too and thought, "how am I to feel bad for this guy?" and I understand how the banksters have fucked the economy over but some people were just plain stupid. Like the guy that bought the one bedroom one bath frame house from 1950 next to me for 205K. He thought he was gonna flip it but he got left holding the bag instead. Jeeez, his payments gotta be 2500 a month at least.

and Fuck any country that would allow shit like this tow happen