Why do individual foreclosed homeowners (former homeowners) see their foreclosure as personal failure instead of a systemic problem?

Why aren't they marching in the streets?

Who is the "typical" foreclosed homeowner? Were there many people drawn into the market as investors? Are there any numbers on the amount of "bad" investors who are losing more than one property?

Who will buy all of these properties that are now owned by the bank?

I don't want my tax dollars used to bailout greedy morons who CLAIM they were cheated ... SO WHAT !!! It's not the gov'ts fault or responsibility!!!

I live in an apartment because I read the mortgage terms !!! I have NO RESPONSIBILITY and LESS SYMPATHY!!!

Bailing out these idiots will lead to a civil war ... you think I'm exaggerating? Just wait 'till the bailouts don't work and the banks are giving big bonuses and these moron homeowners are still living in their homes while I end up out of work !!!!

I AM PISSED !!! %#%$%##%@%

If homeownership is not realistic for all Americans, how many are we talking about? And, how do we take home-ownership out of the myth of the American dream?

Paul- I saw your segment this evening.

You (and your guest) seemed to jump a couple decades from FDR to George H W Bush (later back-dated a tad to Ronald Reagan). There was no mention whatsoever of the Community Reinvestment Act of 1977 (Carter), nor of the couple of decades of urban renewal as the core of federal housing policy. Were not these substantive policies, which lead to the growth of federal involvement in the housing & mortgage markets?

Didn't the government-sponsored entities of Fannie Mae and Freddie Mac play a critical role, showing the world how to securitize residential mortgages, a lesson that Countrywide, other lenders and Wall Street, of course emulated, right up to the ultimate climax and collapse of the housing, mortgage and credit markets?

But why was CRA and HUD overlooked? Was it simply a matter of available segment time? Or could a more 'biased' explanation be attached to that editorial decision? (as in, "but wWe don't want you to know this".)

Other than this, I have greatly appreciated your lucid explanations; thank you. This is a subject about which I have nearly boundless curiosity.

What do you say to those who suggest that Fannie & Freddy "caused" the subprime crisis? Didn't subprime mortgage sales start and explode before Fannie & Freddy became involved with them?

I agree with Rebecca, why aren't they marching in the streets? I realize President Obama has inherited a worse situation than even FDR, but why not a nationwide, immediate moratorium on foreclosures, especially for those who have been subject to predatory and fraudulent lending practices. I am ashamed to be an American with these massive foreclosures across the nation in combination with refusal to provide universal health care! What kind of people are we?

Did most subprime loans go to minorities (in real numbers) or are minorities overrepresented in subprime loans (based on their percentage of the population)? Right now you have lots of media and blog hype that the absurd idea of "forcing" banks to lend to minorities caused the subprime crisis. People believe and state this like its gospel. It would be helpful to have sound byte responses b/c people have short attention spans for nuance and complexity.

At the end of the report, the question was asked whether the mortgagees should shoulder some of the blame, but I don't think it was really addressed. I agree that this was a con game, through and through, and there is no forgiving the con artist, but it must be noted that the whole reason a con works (see The Big Con- David Maurier) is that the 'victim' is trying for something to good to be true. They are complicit in the cheat. Can you comment on that?

I have a burning question I hope you can answer. How many dollars have US banks lost on subprime loans. By that I mean, foreclosed, sold the home, and ended up with a deficiency. How many dollars of deficiency? My guess is only about $15 billion. Thanks so much.

When you work as a eye care assistant in a chain of vision stores you cannot afford a $600,000.00 home. There was no way she could ever have paid back that mortgage! Now she wants someone else to do it.

What incentives are available for buyers in today's market? Do you have to be a first time home buyer to be eligible?

Thank you for this work. There is a big difference between wanting to see minorities as home owners and crooks.How many people know that Warren Buffet did sub-prime mortgages the right way? He put families in manufactured homes they could afford. Very low default. Blame underwriters for the financial collapse.

My husband has a good salary as a NASA scientist, and I am a writer waiting to see her first book publication. We opted not to buy because we had one income and we didn't want to be stressed while raising young children. We also felt homes were over-priced. That was 7 years ago when we moved back to the SF Bay Area. We still think homes are overpriced, yet the banks are waiting for a return to normalcy. When single family starter homes are still nearly 1 million, good luck getting back to "normal"!

In 2005 we financed our personal residence the old fashion way 20% cash down, never missed any P&I, current and not facing foreclosure..but am upsidedown on a 30 yr fixed pd $255K,owe $193K FMV $130K. Any loan modification plan options available from the fed for us?

Thanks for the info. It was excellent. Should I stay in a house that is more than half of my income. If I fill a Chapter 13 I will be able to keep my house but would have little money for anything else. Or should I move some where cheaper and pay my creditors and not file a bk. We just bought too much house in 2005. Whats best? My kids are grown so the schools are not holding us back.

Why not outlaw adjustable rate mortgages for single family homes? If all mortgages were fixed rate then the crisis would not have happened because everyone knew their mortgage and could pay it.

Most foreclosures are now happening to people who were innocent, trusting and good faith borrowers. These borrowers were Predatorily defrauded and discriminated against and were given loans which violate TILA, Truth In Lending Act laws. These Criminal Lenders,then sold the Defrauding loans to the Criminal Investors, who in turn let the Sellers then become the Servicers of the loans - What a Malicious Merry-Go-Round and Railroading Ride, Victimized borrowers and our Country are now being forced to ride until we vomit - - ALL 3 parties, Lender, Investor and lender turned into the Servicer, Knowingly and Willfully pooled these VICTIMIZED BORROWERS into Financial Killing Corrals, like Cattle to being led to the slaughter. The Banking Institutions PREMEDITATIVELY PLANNED for borrowers loans to corruptly fail, so these Banking Institutions could SHAME & BLAME the Borrowers, in a diabolical Diversion tactic to Bilk Billions in TARP funds..

Why are the TARP funds not being used to help Defrauded and Distressed Borrowers, to Remain in their homes with TRULY AFFORDABLE Mortgages - It is the VERY LEAST the Banking Institutions can do, in order to pay for their CRIMES against the borrowers they Victimized and also for the American Taxpayers, who they made fools of. Why are the Banking Institutions allowed to CONTROL OUR PRESIDENT and CONTROL OUR LAWS ... Why are modifications allowed to be NON VIABLE, so that the modificatiosn will eventually fail - Why are these 3 Swindling Stooges / The Banks, Servicers and Investors, allowed to keep on defrauding Borrowers with these defrauding Modifications ? Why are the Politicians and our lawmakers, not forcing these 3 swindlers into doing the right thing with Modifications ?..

I mean I fully understand GG / Gluttonous Greed, but these Banking Institutions are Committing Criminal Greed and it needs to STOP NOW !!!
Thank you

HOW COME WITH THIS CRISIS, IT IS NOT EASY TO US TO BUY OR INVESTMENT IN THESE PROPERTIES WHICH WILL HELP FORECLOSURE HOME OWNERS, BANKS, PROPERTY TAX AND......

When are you people going to come down off your "everybody is a victim" platform and start asking pointed questions of these stupid borrowers?...like "Did you read your contract?!!" "Is that your signature there on the contract or did someone forge your signature?" As long as reporters like you continue to avoid the hard questions, no one in this country is going to start taking responsibility for their own decisions and actions. Hell, we can ALL just be victims from now on.

This is a segment that is good, but very incomplete and misleading, for it portrays minorities as the focal point for the mortgage crisis, but, if the truth is to be told, the whites tht took out loans far beyond their means, check Martha's Vineyard vacancies and other affluent neighborhoods that have boared and vacant homes/estates and you will ascertain that minority so-called "sub-prime" loans permeated the white community to the point it their loans being far in excess of the minority loans.
As a matter of fact, there was an article and news segment in
Newsweek that covered that very subject.
The loans or rather the second and third loans that the whites took out during the boom and lost their jobs and other income due to the recession that started in '07 or before on the Bush watch, long before President Obama took office, are the primary reasons that their "sub-prime" loans went under.
So report on all facets and you basically write a book that targets minorities and lets the whites, who you should have known were the main culprits in this fiasco, get off the hook, scot- free! Actually the minority "sub-primes" were just 1% of the problem, but was 100% of the news coverage and books to target minorities and to switch the blame with smoke and mirrors. May God continue to bless you and that He pricks your heart to tell the whole truth!! AARON SR.

Do you have any information on the cramdown provision of the bankruptcy law that was defeated in the Senate last sesssion? Is it going to be brought up for a vote again?

Thank you.

once the government stops using homeownership as a tool for fake economic growth inflating prices (and hurting future 1st time buyers doing this)... there's no hope for improvement.

buying a home with these prices on main MSA is basically buying a call option on appreciation. hence, they turn every single youngster into a speculator to the benefit of current homeowners (which tend to be old voters).

why nobody complains about this massive transfer of wealth from the young to the old? can the young renters please stand up and vote against this?

Great article,but its a precis-just an appetizer compared to the whole story. The entire world economy is looking at this crisis right now, mainly because as the story ominously states at the end-these rates are set to reset next April and the repair to the original damage has not been done.This thing is far from over.It is an excellent teaser for the Katz book, and that is good.I really hope it starts a national discourse.A frontline type treatment on the subject is more in line with the dire nature of the subject.

I was watching your report. I saw a woman from Jamaica queens new york that bought a house from united homes. I bought a house from united home too. In far rockaway. Everything that she said was so true. Well I lost my home less then a year there was no help what so ever. I was put out by federal national. I have 2 kids one 2 and 4. I'm 25 years old. No one wants to help. This was a 3 family home I had tenants living there they are still living there I don't understand why. My childrens father is still there. I was put out with my 2 kids. United home is gone federal national bought the house for 1000 dollars. I bought the house for 679000.00. The government has a lot to do with this. If some one could help me understand. why was i nobody when I had a home. were are my fights. so many people out there like me.