The Financial Crisis was Caused by all the Homeowners Who Borrowed Irresponsibly


“The reality is responsible homeowners are not losing their homes; some may lose their houses because of a job loss, and some may chose to walk away, but very few truly responsible homeowners were endangered. The foreclosure crisis was caused by the irresponsible.”


Responsible homeowners did not lose their homes in foreclosure

Many of the sob stories in the mainstream media were focused on who are characterized as “responsible homeowners” in danger of losing their homes. For several years during the recession, I wrote daily posts exposing mortgage equity withdrawal into the millions of dollars. Many astute observers noted the extravagances and poor decisions that often make these homeowners look less than completely responsible. For the most part, responsible homeowners did NOT lose their homes.

To see the truth in this statement, one needs to have a clear definition of “responsible homeowner.”

A “responsible homeowner” is a buyer who, if they utilized financing, did not stray from the conservative parameters set forth by lenders (prior to the bubble) and financial planners. This includes using a maximum 28%-31% debt-to-income ratio on the mortgage, at least a 20% down payment and fixed-rate conventionally amortizing financing.

Few who fit this definition lost their homes; although, some of them chose to walk away from the debt because they were hopelessly underwater. The only ones who fit the above definition who are in danger of losing their homes are those who lose jobs; they are the truly sad casualties of the housing bubble. Unfortunately, it was common due to the financial crisis caused by all the homeowners who borrowed irresponsibly.

Responsible borrowers are not the ones defaulting on their mortgages; irresponsible homeowners are.

Full post here…

Guess this guy hasn’t read Chain of Title…


25 Responses to “The Financial Crisis was Caused by all the Homeowners Who Borrowed Irresponsibly”
  1. Thank you for posting this article here. I noticed on the original site there was no place to comment, and with good reason. Who in today’s economy would believe that drivel and let it go unchallenged.

    The author of the article had one motive: To make money moving Real Estate….so he’s hoping to convince his future customers that it couldn’t possibly happen to them:

    But there are many homeowners who are stunned that it happened to them….once believing that it would have been impossible to believe the litany of fraud that has gone un-prosecuted:

    I am attaching an outrageous case of a homeowner that had to fight all the way to the appeals court….never missed a payment….yet the servicer foreclosed…finally, the appellant court ruled that he had cause to continue this lawsuit!

    The notary on the assignment of deed of trust in his file is a convicted felon….yet…this ridiculous article states ‘homeowners are irresponsible’ rubbing salt on the wounds of hard-working Americans.,%20LLC

    This is not an isolated case….all across the country homes are being foreclosed on that have been paid off, were not in arrears, or have become a victim of the modification lie (modern fiction).

    Even SIGTARP’s recent report has stated six out of seven lender/servicers have failed to honor their own modification agreements. You can find that report here:

  2. susan says:

    Meet Larry Roberts…the real Irvine Renter. He may have been the model for Rick Carver in 99 Homes….

  3. Angel says:


  4. mike Drouin says:

    An accusation such as this Does ” ADD INSULT TO INJURY ” you took the words right out of my mouth Tom , because that’s exactly what it is . If the circumstances are a LIE from its inception , then it takes continuous LIES / Fraud to cover it up . The entities that were plugging these mortgages into the SCHEME , didn’t care about the quality of the loan because the ” deal parties ” were going to make the loans look better than what they were anyway , to the Investors and the whole SCHEME was designed to collapse within a short time period of time . So the LIE , that this was somehow caused by people who should have never had Mortgages in the first place , was the cover-up for the fact that these loans were exactly the type of loans to be used in a scheme where they played Borrower against the Investor , each not knowing they were being set up for failure , while the deal parties were making TRILLIONS , and the bomb was set to go off approx. 3 to five years down the line .
    What your about to hear , is as disgusting as it gets and I will make the connection that Government officials are right in the heart of what was and IS going on . They have perpetuated the LIE to cover-up the true causes of what was , and is considered abusive taking our wealth and most prized investment , Our Homes !!! Owning a home is considered the cornerstone of the American Dream and it is where we find sanctuary and safety with Family having deep emotional ties . The Nation was about to be rocked by an ILLEGAL SCHEME for profit , devised by Avaricious Adventurers , if you will ,very predatory in its nature and the fact is , even most of the Mortgages weren’t even legal and here’s why ……
    Between the years 2001 and 2007 many sub prime entities were created to go out into the population and create Mortgage Notes to be plugged into this scheme for profit by the Investment banking sector , Bear Sterns , Lehman Brothers , Goldman Sachs to name a few . the sub prime entities created were the ” straw man lenders ” in other words , they were empty vessels who would be used as a front a SERVICER of the ” money streams ” that were going to be created from Borrower to investor . This contract was to be hidden from the public eye as you were led to believe that your payments were being sent ” TO ” the entity to pay down the debt on the Mortgage property , but the Fact is , your Payment went ” THROUGH ” the alleged Mortgagee entity to pay on a contract that was TABLE FUNDED by Investors . A contract that was created behind your back and without your permission . So the one that was named as LENDER in your promissory notes , is not the one who funded the other contract you are really in and have been paying into . The Mortgages are a LIE !!!! More to come ……..

    • mike Drouin says:

      So millions of Americans promised to pay money back an entity that never lent you anything and it was NEVER their INTENT to execute a Mortgage contract with you other than on paper . It was their job to get your name on a promissory Note to fuel the Scheme for profit Taking place behind your back and without your permission ! They then acted as a servicer of the income streams created by the CONVERSION of your promissory Notes into securities in a contract TABLE FUNDED by Investors through Investment Banks . The way this was executed drives a stake right through the contract process !!! The alleged Mortgagee , NEVER brought any CONSIDERATION to the table in Contravention to the terms of the Mortgage contract . That is a violation of contract Law and the Mortgages are VOID !!!! No CONSUMMATION ever occurred and the Mortgage documents are subject to RESCISSION . No MUTUAL ASSENT could ever be achieved in a contract you knew nothing about but were involved in from its inception !!
      It should be noted that The Investors who TABLE FUNDED the securities contract , never had any recourse to the homes involved , because of the construct of the contracts they had with the Investment Banks , and the Investment Banks , by Law , had no recourse to the Homes because they only regulated to deal in commercial property . All the entities that were involved in being the ” Straw man lender ” Had NO authority to transfer what they never purchased , but when the designed collapse came , the homes had to go somewhere , and LIES / FRAUD began on a massive scale !!!! It should also be noted that the Investment banks during this scheme , Packaged , packaged , and re-packaged these loans and sold them to an untold amount of Investors who were led to believe they were entering into long term investments , but they were lied to as the scheme would reach critical mass and collapse , with the blame laid at the feet of the Homeowner !?!? Two more things , The Loans were sold so many times to different Investors that your homes were paid off ten times over by Investors !!! and yes , you are entitled to that money because you unknowingly funded the scheme with your collateral / Home Also , John Kasich was a CEO at Lehman Brothers when all this was taking place and Hillary Clinton gave speeches at Goldman Sachs totaling 633,000 dollars it was reported she said to them ” We got in this together , and we will get out of this together ” Get out of what Hillary ??? Bear Sterns and Lehman Brothers have gone belly – up because of what happened , but it seem that Hillary’s got Goldman Sachs Back …..The system is in protection mode and the entities created for our protection are guarding the truth from being exposed . Welcome to financial America 2016

      • mike Drouin says:

        All this was Illegal because from its inception it was Fraudulent concealment , Fraud in the Inducement , and Fraud in the Factum and the taking of your promissory Note and its conversion into something that was used by the Investment Banks for economic gain is called THE INTENTIONAL TORT OF CONVERSION !!!

      • Tom says:

        So this pretty much explains why they did my Fraudclosure as an “In Rem” foreclosure, which is against the property only and not me personally.
        The more I presented their fraud in court, and the documents that I received from the Court Recorder proving the fraud, they decided to close it out and hide it ASAP.
        The foreclosure never showed up on my credit report, and it’s almost like it never happened. It also removed the deficiency they originally wanted, after stealing whatever they could get their hands on.
        Car thieves go to jail, but house thieves are legal. The house thieves have bigger job titles and dress better. They are above all laws because they create new laws to cover their theft.
        Hillary Clinton involved? That’s no surprise!
        I still think that all families should have their own money printing machines that they can use for themselves anytime they need bailing out too! And then have the banks cover it. Now that would be equality!
        So do we all file Class Action Suits and demand our money back?

      • mike Drouin says:

        You have a right to disgorge them of the profits they made while using your personal property ( note ) as if it was theirs . When it cannot be determined how much that is , then it’s three times the worth of the house !!! The main reason everyone loses in Court is that they are arguing the Fraud , after the Fraud . The documents that it took to hide the fact that there ever was a legal Mortgage What you are saying to the Court by doing that is , at one time there was a valid Mortgage and Note , but THERE NEVER WAS . You can go back to the Court with all the previous litigation void ” ab initio ” and argue that the Mortgage is VOID because the entity that was deemed LENDER was in contravention to the terms of the Mortgage by bringing NO CONSIDERATION to the table and executed a totally different contract !!

      • Tom says:

        Thanks for sharing this information Mike. It all really does help put the pieces of their scam together. (And they thought Madoff did the biggest financial scam???)
        The sad thing about it is that there is no longer any way to fight it in the courts. With the courts being involved in the scam to help with the fraudclosures, where is there a court to go after them?
        And if you think law enforcement will help if anything is reported? They ignore it!
        The courts have been changed from places for people to receive justice for the crimes committed against them, to places that are now big money making machines for the wealthy corrupt.
        They’ll use whatever they can to steal as much as they can. They always come up with new fancy language to make the average person look stupid for not understanding their new so-called laws. They are masters at the con game. They will make everything work for them only.
        Has anyone ever heard of the term “In Rem”? Or is that just some new wording they added to cover their asses if their victims are fighting the scam, and it allows the victim to think the courts are being sort of nice for what they have done to them?
        They also played that most people would be too embarrassed to even talk about what they were going through with the foreclosures. People didn’t want their friends and families to know what they were going through.
        The loan modification programs were nothing more than a delay tactic to keep people in their homes long enough until the courts could fit them into their schedules.
        That was just more false hope for people to believe that they were going to be able to save their homes.
        And the lawyers, judges, and banksters sat in their offices laughing their asses off at the people trying to save their homes that were funded with no real money, and scammed out of it later.
        When you’ve experienced going through it, met and heard the stories of other people that have gone through it, seen and felt the pain they have gone through, that is proof that the system we once believed in has failed.
        It’s been progressively getting worse for many many years.
        The GREED, (or MONEY ADDICTION), has ruined and corrupted a lot of minds that has systematically destroyed millions of American lives in the process.
        People that have worked hard and followed the rules for the betterment of the nation, that once believed in the country to stand by them and support them, but a rigged system that only turned around and betrayed them and financially raped them, and ruined their lives and dreams.
        I heard that since the foreclosure scam started around 2009 thru 2015, there has been about 7.6 million foreclosures. Now they say that there will be another 7.4 million more foreclosures in 2016.
        It appears as though they have perfected their scam, and I understand that they have streamlined the process. They want the homeowners out of their homes within 6 months or less.
        Once anyone is targeted by them for a forced foreclosure, the corruption will win.
        Hire your own lawyer to help fight it? He’ll only take your retainer money and quit! You’ll only lose more money if you think a lawyer is going to help you!
        This coming Fall is going to be interesting with everything that is happening.
        There is far too much violence, anger, betrayal, lies, fraud, theft, and people at the top still saying things are going good. Good for them, and pure hell for the people they keep destroying with their BS!
        Mike, everything you stated also shows why the TOO BIG TO FAIL & TOO BIG TO JAIL banks were bailed out. The government couldn’t allow the banks that were involved in the scam to go down. Who would have taken their place if those banks went down to funnel back the kickbacks to the politicians that are/were also involved?
        What other reason would they have the Federal Reserve print up trillions of dollars in monopoly money to help bail them out? Whatever happened with the rules that if you fail in business, you close the doors?
        How did Hillary say it, “Silly people! Laws are only for poor people”. That about sums it up for what she has walked away from! Any other average person would have been put under the jail doing 1/1000th of what she has done.
        I still think that everyone should have their own money printing machines for bailout purposes. Let’s make things equal and level the playing field!
        The citizens can then do like the bailed out banksters and take 8 figure bonuses for themselves for failing, and then charge it to the wealthy corrupt taxpayers future grandchildren and great grand children. Basically have it where whatever anyone prints up and uses for their own bailout purposes, put it where the payments on that won’t start for around 200 years or more. Or make it like 2,000 years. All that extra free cash will really get things going for everyone.There would be no violence if everyone was on the same free money printing bailout programs.
        It has been proven that the more money you have, the more freedom you have, as long as you grease the palms of the right people to cover your ass!
        What a joke of a totally corrupt and rigged system!!!

      • mike Drouin says:

        Just so you know Tom , there are a couple of cases pending in the federal court here in NH with mine being prepared right now .Any previous litigation is void with this newly discovered information . The other cases are gaining traction , and I was able to stop my foreclosure sale , pending the submission of my complaint to the court . is my e-mail contact me because I can share the substance of the other cases and mine as well when they are finished . The Fight isn’t over yet Brother !!!!

  5. L W says:

    Money, get away
    Get a good job with good pay and you’re okay
    Money, it’s a gas
    Grab that cash with both hands and make a stash
    New car, caviar, four star daydream
    Think I’ll buy me a football team

    Money, get back
    I’m all right Jack keep your hands off of my stack
    Money, it’s a hit
    Don’t give me that do goody good bullshit
    I’m in the high-fidelity first class traveling set
    And I think I need a Lear jet

    Money, it’s a crime
    Share it fairly but don’t take a slice of my pie
    Money, so they say
    Is the root of all evil today
    But if you ask for a raise it’s no surprise
    That they’re giving none away
    Away, away, way
    (Away, away, away, away)

  6. @@@NOYFB says:

    Warning ! This person is a danger to families ! It’s a person that just is motivated for a reason.The real homeowners who lost there home.Should beware of this type of post.
    Rob Signing still exists today !
    So for all the people who did pay or got screwed by our own system,”Goverment” remember your health and freedom is more important then a punk !

    God Bless you !

  7. lvent says:

    Where’s the HUD 1’s & moreover, where’s the UCC 1’s?

  8. Angel says:

    Whom ever wrote/believes this nonsense,UR IN ON IT!!!!!as to homeowners fault,NOT HARDLY,I bought 1st home,built my credit to do so,NEVER needed modification,needed nothing EXCEPT what I signed for…my was SHREDDED by greedy,deceitful,law less,cowards that hide behind EXC– USES 101…THERE is NO excuse for what these banks have done &continue to do,,,& whom-ever wrote this you are a blind,deaf,dumb idiot..there’s 6.6 MILLION OF AMERICAN CONSUMERS that have been destroyed over MONEY,SHELL GAME….my advice,,get a REAL clue b4 posting this garbage….2all HOMEOWNERS U DIDNT EVER DESERVE THIS FLAT OUT THEFT BY DECEPTION!!!!My thoughts/prayers are w/ALL y’all…even dumb-dumb who thought to write something so wrong/heartless/untrue…NOTHING homeowners fighting for theirs aren’t used 2!!!Peace:-)

  9. I r so wrong. Many seniors walked away their homes were upside down couldn’t refinance for repairs needed a roof is a major rr pair on fixed income and loss of job? Yes that happened and they couldn’t sell something no longer worth what they paid. You are very mistaken for the most part the liars and scammers were right in there with both agents representing hud and the banks and yes they had new homes in less than 2 years where is the justice? There is none. Lives were ruined you are stupid!!!

  10. Tom says:

    I definitely have to agree with these other comments that the homeowners that were supposedly irresponsible for causing the crisis is just more blame on the victims that didn’t cause it.
    I applied for a mortgage originator job back then and I was hired, even though I didn’t know much of anything about the industry. As long as you looked great in a suit and tie, and trainable, you got the job.
    The training they gave you is to push as many loans as possible to collect those big commission checks. The basic pay plan was commission only.
    I didn’t last long at all performing that job. There was far too many unethical business practices happening where I had no choice but to quit.
    Most of the loan originators could, and would, push loans onto their clients that the loan originators knew were putting their clients into a future financial nightmare. People coming in to get a first time buyer loan were easy targets. Those people were looking for a chance to get the so-called American dream and had their hearts set on a home, so they would come in to see what the so-called professional financial loan originators could do for them. They were putting their trust and faith in these loan originators and didn’t realize they were going to be burned later. It was basically the same as going to buy a car at this point. How many cars get repossessed every year?
    Obtaining a loan back then was beyond very easy. The banks came out with the easy money loans. Remember the LIAR LOANS? Stated income and NO JOB VERIFICATION LOANS?
    I even got kicked in the ass by one employee because I wasn’t following his program. He was the type that preferred doing refi loans because he could slap on an extra $6,000 or more in fees right before the closings and his clients wouldn’t even know what hit them. He knew that most people were desperate where they would never leave the table at closing.
    Back then, most of the mortgage company’s had their own selected appraisers that could get just about any property valued at whatever value they needed to get their loans through.
    Where did the fiduciary responsibility for their clients go?
    In my opinion, this was a scam that was put in place by the TOO BIG TOO FAIL & TOO BIG TOO JAIL banksters right before the big downturn in the real estate market. The earnings the BIG BANKS are making now is enormous with the fraudclosures. Especially any loans required to carry PMI. That is a forced placed insurance scam that needs to be shutdown due to the amount of abuse that has occurred by the banksters, lawyers, and courts.
    The homeowners pay the premiums, but the banks collect the insurance payout. That is a huge motivation factor for the banksters to force as many foreclosures as possible.
    Do you see the timeline of how these events have worked out?
    And all their lawyer and judge friends benefited as well, and they are doing it all over again. Even if they get caught with fraud, no one ever goes to jail. The banks just pay a fine and go right back to what they were doing before. Now they just work those fines into their budgets. And who collects the fines? Their politician friends?
    They have even added a new forced placed insurance scam called MIP. They just moved the letters around! So if you do put down more than 20% for a down payment, you still have to pay the premiums on the MIP to supposedly protect the bank. Or is it more like allowing the banksters to continue their fraudclosures to collect on that new force placed insurance too?
    Since the BIG BANKS have become so corrupt, and protected from being split up or shutdown, maybe the states should require everyone to pass a test on mortgage financing before they are allowed to secure a loan? Wouldn’t something like that really piss off the banksters? And open everyone’s eyes to just how dirty and crooked the banks really are?
    Or how about having all financial transactions for the mortgage industry videotaped where the buyers also receive a copy of those recordings for future use?
    They should allow all foreclosures to be videotaped in the courtrooms where the people getting foreclosed on receive copies of those recordings too!
    That would really open everyone’s eyes to what’s really happening!
    I could go on and on, but at this point it seems like a hopeless situation.
    Just look at the choices we have for our new president!
    I’d say were in for more future insanity caused by the money whores and more corruption by the money drunks. They want it all, and they are going to steal it all, one way or another!
    The system is broken and it is no longer united. It is the wealthy corrupt against the struggling poor. The middle class has been systematically slowly destroyed.
    The wealthy corrupt are above all laws! If they get caught in some type of fraud or theft, they just create new laws “on the go plan” to cover their massive fraud and theft. As the saying goes, “United We Stand, Divided We Fall.” People better wake up!!!

    • mike Drouin says:

      Thank you Tom for sharing inside knowledge of what was going on , but even though you were that close to what was taking place , the dynamics of the scheme , the why would they be doing this , wasn’t completely revealed to you ….. I’m gathering my thoughts and will explain what I mean shortly . The reason why they set up the scapegoat will make all the sense in the world when the truth is revealed …….

      • Tom says:

        Hi Mike, I’m looking forward to what else you have figured out about this massive fleecing of the American homeowners.
        Even though I gained some knowledge by doing mortgage loans for about 3 months, I also went through the fraudclosure and had my home stolen from me. I had experienced some financial hardships, mostly because of being disabled due to a work related accident, but after my father passed away, the inheritance I received could have brought my account current, or I could have paid it off in full. They denied both because Chase Bank made more money forcing the foreclosure. I was told that the PMI, which I had to pay the premiums on that force placed insurance, allowed the banks to collect 80% of the loan amount, and then the bank earned more profit on reselling the property afterwards. They made more money by forcing the foreclosure so there was no way they would allow me to keep it. They resold my home for an amount that I could have paid double on. Plus before the foreclosure was final, the locks were changed on my home and about $25,000 worth of personal property stolen, all WITHOUT A COURT ORDER! You would think law enforcement would help? Forget it! That was a total waste of time! The police were either in on that part of the scam, or told to look the other way.
        Instead of this country bailing out the big banks when they were going down, they should have done like Iceland where that country jailed the banksters, closed down the corrupt banks, and bailed out the homeowners. They had the courage to go after the crooks and protect the consumers rights. We don’t see that here anymore! It’s all for the wealthy corrupt and to hell with the average, honest, hardworking citizens struggling to make ends meet.
        If I didn’t experience a work related accident, that required major back surgery, I would have still been working as a carpenter building homes, schools, factories, etc.
        But after that accident, I was tossed out of the system like a piece of garbage because I became disabled. So it was basically where I helped build these scumbags their homes while they threw me out of mine when I was down. While I was down is when I found out how bad people really are when they come around to steal as much as they can from you. Union disability pensions or Workers Compensation? Those are just more scams that the injured workers will never see!
        You’re lucky if you can collect Social Security Disability, and sorry, but that doesn’t even come close to live on.
        I really feel sorry for the kids that have no idea what they are in for with what they’ll be experiencing if none of this is ever corrected.
        People better wake up and inform as many as possible about the truth. They say knowledge is power. It’s about time the American citizens demand justice for the hell they have experienced, and lock up the scum that have been committing these crimes. I don’t care what titles they have. Lawyers, judges, banksters, and whoever else is involved, lock them up. That is the only way things will ever change. As long as they fear no possibility of prosecution, it will never change. In my opinion they have all used and abused their professions for personal gain. That is a violation of their oaths and duties as professionals!
        Like they say, the people that wore denim built the country! The people wearing the suits are destroying it!
        Whoever wrote the article above must be in with the corruption and trying to help cover up their massive fraud and theft by putting the blame on the homeowners!
        Maybe they just wrote it to add insult to our injuries!

  11. Carolina Bagnarol says:

    What a total crock of crap, this idiot spews. It is well known that the fraudulent banksters, and mortgage companies caused the financial crisis that brought millions of people to ruination, with the services they provided. Is this bafoon saying, that the consumers asked to be placed into proprietary loans? Which, are mostly now illegal to sell. This idiot needs to crawl back under the rock he came from.

  12. mike Drouin says:

    Al Tetrault said it best when he said ” nothing like blaming the victim for the crime ” blaming the homeowner for the theft of millions of American homes is the icing on the cake to one of the biggest crimes against America ever !!! I will be back to clear the air in a moment !!!!

    • Julia Young says:

      What part of fraud, forgery, perjury- force placed insurance, false testimony, ignoring statutes or registration laws in all 50 states, evicting people from their homes, tossing their property in the street, declining/losing or returning payments, falsely foreclosing, stealing their equity, destroying their credit and ruining their lives etc etc. . . . what is it the writer fails to understand??? .

  13. Concerned says:

    It is truly amazing if you delve into the NUMBERS of those who were supposedly “IRRESPONSIBLE”. For that group to have taken down the entire housing market is ludicrous. The appraisals HAD to have been falsified. And that is KNOWN to be a FACT. The borrowers did not do that. And the borrowers would not have invested money into property that was ‘upside down”. Nor would borrowers have taken out loans for the home improvements on property that was already underwater.

    The author gives all these independent borrowers far too much blame/credit for causing the crisis. HOW could that many people have all intentionally borrowed too much, all in the same exact period of time? This is where safeguards should have also have kept these loans from occurring.

  14. Al Tetrault says:

    Here’s yet another example of someone blaming the victim for the crime. Anyone familiar with the crisis knows that the financial services industry bombarded the victims with “please borrow money,” and don’t worry about paying it back because you can refinance or sell the home for more money than you’re paying for it today. The victims were often/usually financially illiterate, and the financial industry knew exactly what they were promoting. So sad to read this.

  15. Charles Fetters says:

    When, where and how did the homeowners know to plot against the banks?
    Fannie and Freddie, America mortgage association, along with majors banks world wide and the help of Angelo Mizola of Countrywide mortgage created Mortgage Electric System. Then the defrauding began.

  16. x says:

    Tell that bs to someone age 58 who loses a job and can’t find anything but 3 part time jobs. A great opportunity was missed by the O to figure out how to save everyone’s home while the economy and jobs recovered. Instead nothing but bs and we continue to have the greatest economy ever—- malarkey

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