I am sitting and fielding mortgage phone calls from individuals that just a year or so ago had programs to handle their requests. Believe you me they do not like to hear there is nothing I can do for them.....No Equity, Credit scores way too low....and the high payments left after a low teaser rate over comes them.
I know why it happened....I have been in the business over 20 years now. Anyone with a brain could see it coming 5 years ago....how people were given opportunities they never should have had.....or been given the option to have.
It is a combination of a lack of will power from the buyer/refi'er......and lender's looking to keep up and not monitoring closely enough loans that should not be made.
I hope that we all have learned a lesson....while everyone deserves a second chance and a chance for a better life....we have to be wise in how we educate these individuals so that they do not lose everything. We have a responsibility to be sure when our client makes their decision, they have ALL the information possible so that it is a knowledgeable one!