Quote:The buyer should know immediately it is a bad deal if he/she has only one paycheck. That is the buyer's fault. But who gets the blame for those buyers losing their jobs by the time mortgages skyrocket?

 

I blame it on the bank for accepting one paycheck as down payment for an ARM or something similar. There is no guarantee a house buyer will stay employed long enough to pay off the whole mortgage.

its all parties, the bank for giving the person the loan.  The person who had a job for a short amount of time and thinks that means they deserve a house.  part of purchasing a home is knowing you have job security to afford that home.  Granted many people did have job security before the crisis, but the crisis changed that for some.  Others knew they didn't have job security and went after loans because they knew they could get one even though they knew they couldn't pay for it if anything went wrong.

---