Few people have any sympathy for the banks and the lenders involved. If they failed to assert their rights, that’s not my problem.
If they write off the loan as a loss, that says a lot more about them than it does about the borrower. And looking at it from their point of view, overvalued property is worth nothing.
Which is exactly how they treat underwater properties.
That s all well and good, but we as tax payers and bank customers are the ones who pay the price.
People seem to think that banks are some strange monolithic organization with malevolence and hatred in their hearts. They are simply businesses that are run by and employ people. When they get screwed over it is their investors, employees and customers who are getting screwed.
I would much rather deal with my local bank, or my credit card company than the DMV or the IRS. After all they are at least nominally customer service oriented.