Who's fault is it? Banks or Homeowners?

I wrote a few blogs about not abusing lines of credit.  Many people would easily be able to sell if they didn't run up their line of credit to a point where they are looking at a short sale.

Credit lines are definitely making in impact - refi's as well.  Many bought their home where they could afford the payments then refi'd or equitied themselves right out of their home!

It's the chicken and the egg story. Wall Street said we can probably sell that. The banks made the offers because the people wanted to own a home and have money to boot. The banks were in competition with each other, so they made attractive sales packages that appeared completely harmless. Wall Street sold the bad paper to anyone anywhere in the world with promises of great returns. All three are complicit in the execution of the failure. But only the borower is suffering.

Also, I think many used the HeLOC to try to stop the crashing decrease of cash flow to their businesses.  Sometimes irresponsible spending is a smaller piece of the puzzle.  Cherise

The banking system was put in place to protect consumers from themselves by setting guidelinesand limits to how much to lend.  A lot of moneywas made by Fannie Mae, Freddie Mac and other big wheels.  This topic can go on and on and there is much investigation going on in our banking industry.  There are many who believe it is a conspiracy theory and all planned to fail - look who is paying cash for REO's????