And as a secondary thought on this:
I read every last word on every page of my mortgage. I knew exactly what I was getting into. I would not settle for anything less than a 30-year fixed mortgage. No balloons, no ARMs, no shenanigans.
You’re arguing that because someone didn’t understand or didn’t read the contract they signed, they should be exempt from repayment, and that’s just plain daffy! If the bankers write screwy or unethical laws into their contracts, that’s for the legal system to work out, but these are not cases of mortgage lender abuse, these are cases of folks signing up for something they couldn’t afford to perform upon!
If they read the paperwork and were leery of the wording, they should’ve hired a real estate lawyer; that’s why they’re there!
Great. If you bought in 2005 and paid less than 10% down You're underwater. If you bought in FL, CA, or NV, you're REALLY underwater. This is not about ability to read, this is about the bubble, it's causes and solutions.