Re: Extreme Makeover Foreclosure
"As for the family, I don't know all the details but it seems to me that a responsible bank wouldn't loan someone with their financial history that kind of money."
Which does not in any way remove the "personal responsibility" that one has over his or her own financial affairs. If you can't be bothered to budget appropriately and educate yourself on the potential ramifications and consequences of your decision(s), then certainly you bear a significant portion of responsibility for what may come. In most circumstances, that is.
But these banks that doled out loans for individuals that were so out of proportion to said individual's financial status as to be laughable shoulder a significant portion of the burden as well. Case in point: a few years back, when the real estate industry was a bloated gold mine, I briefly considered buying a condo out here in DC and got pre-qualified for a mortgage. The amount I was pre-qualified for was mind-boggling, and I thought the loan officer surely must have been pulling my leg.
Fortunately, my better judgment prevailed and I elected not to pursue anything at that time. It's downright frightening to think of the dire straits my personal finances would be in had I elected to purchase a property for the amount I had been pre-qualified for. Lot's of dinners of Kraft Mac'n Cheese and Ramen noodles would be my guess...
We'll burn that bridge when we get to it.