[P-Marlowe]

Any money handed out should be given to suffering Americans, not to the looters of our economy.

Since unemployment is only at about 6%, I'd venture to guess that on 90% of the loans in default, the borrowers lied on their loan applications about their income. The banks were not checking on income and were accepting "stated income" as the basis for the loan. Those loan applications all had a clause wherein the borrower hereby "swears under penalty of perjury that the information provided above is true and correct".

I believe that in every case where a borrower lied on their loan application about their income level and then went into default, they should be charged with felony perjury.

I dare say that would stop a lot of the defaults, especially among those who are defaulting merely because they are now finding that the property they unlawfully obtained by fraud is no longer worth what they paid for it.

[singfreedom]

Kudos, you are absolutely correct. My sister is a real estate attorney and is embroiled in this mess-—big time. She says a lot of the big time investors bought real estate as an “investment”. Now, with evaluations falling, they want to bail on these “investments”, in spite of the fact that they do have the money to make the payments! Legally pursuing them is unbelievably expensive and time consuming. Something they are, no doubt, counting on. I am sure this has happened with normal homeowners as well. However, I am, sadly, not certain the mortgage companies can afford to pursue action against each and every fraudulent loan.