I am thinking it is probably both, the mortgage lender with the buyer at the top of responsibility (because they are the ones who actually agreed to the loans in the first place) however...when the housing market was booming and properties were being sold as soon as they were finished construction(some sold during that process) existing homes selling left and right.. it is understandable to a degree that people may have thought, well "we can always refinance this home we cannot really afford later" "buy more house now and get the potential to get more money back when it is sold" or simply when properties are selling as they were, multiple bids may have been offered and someone would have gone to the highest amount plus to get the home they want(outbidding others, while the lender happily lent out the money to accommodate their purchase, even if they could afford it or not). so in a way the lenders enabled a lot of people to buy homes they may not have necessarily afforded and that was wrong, but also ultimately it is the buyer who started all of it by agreeing to the terms. the issue was simply a lot of people were making a lot of money..what it really boils down to..and it was a gamble because if you win, you eventually lose(and you dont want to lose the house).
of course medical reasons, a job loss, disability any other unforeseen factor may have caused some not to be able to afford that mortgage they agreed, that is why one always must stay realistic what you can afford due to those "unforeseen" events in the future(that is easier said that done, I live in the real world!). I have always thought if it takes two incomes to pay the mortgage then they are looking at too much house, its a good idea for a couple to have a mortgage one spouse, one income can handle in the event of a loss of income(you have to keep a roof over your head). with a single income purchasing a home, a good down payment and absolutely a realistic payment(because if that income is gone the home will also shortly thereafter if it is at the maximum purchase)
ultimately regardless..the responsibility still falls back on the home owner and the terms of that loan.
but it has happened, all they can do now is attempt to aleaveate the situation present some way, and I dont think all the new spending proposals proposed by the democrats will help much, focusing on green energy, global poverty act and all the other issues that are important.. but not a priority right now... at the moment when the economy is falling apart today. and even though most lenders/home owners created a mess, it still must be corrected, so I want to hear what is going to happen with a viable plan to repair the financial situation first instead of spending another 150 billion on bio fuels that may be available in 20 years when people are on the streets..(cant leave people stranded even if they made a bad choice)..
