Note the quotation marks on “lose” and “their.” First, you can’t lose what never was yours. In many cases, those who borrowed had zero equity going in, and were soon underwater. So, technically, there’s no “their” there, to paraphrase Gertrude Stein.
Not that there aren’t horror stories of people who, when they borrowed to buy their homes, were fully capable and had all intentions of paying their mortgages on time. Who now, through little fault of their own, can’t pay, and are facing foreclosure. And, thanks to far too many unqualified borrowers, among other factors, the entire housing market has gone squishy soft. At best.
Now Democrat politicos are piling on the banks, those evil bloodsuckers, who, not many years ago, were being beat up by the same crew, especially Barney Frank and Chris Dodd in Congress, because they weren’t shoveling money out their doors fast enough to marginally qualified borrowers. Shovel out, shovel back in.
The alleged cause for the new alarms? The wrong nameless employees at some banks might have incorrectly witnessed or signed some mortgage papers. According the Wall Street Journal, they are “not aware of a single case so far of a substantive error.” In short, there’s been no harm, no fraud, nothing.
That won’t stop Democrats (and one Republican, Sen. Shelby, who ought to know better), from lighting torches, grabbing pitchforks, and screaming for bankers’ heads on pikes.
The housing market won’t recover unless and until inventory is cleared. This means many folks who can’t (or won’t; there’s not a few of those) pay their mortgages are kicked out. Life is hard, but there is never a guarantee of success. What my parents told me, after living through the Depression and World War II, has always stuck with me: live within your means, but if you don’t, don’t be surprised or blame others when the piper must be paid.