The lenders created this mess, and they need to experience the consequences of their foolish lending otherwise they will do nothing to learn from their mistakes and prevent doing it again. They loaned too many people too much money under unstable loan terms. They deserve the pain they get. They do not deserve our tax dollars or assistance.

Borrowers and lenders behaved badly during the bubble. Some were unethical and some were immoral. Today we examine these distinctions to see what we can learn from their mistakes.

Fine China For many people, a good credit score is like fine china sitting in a cupboard.  They’re glad they have it, but quite frankly they don’t use it and definitely put way too much value on it.  If you have a good working car, a place to live, a debit card, a credit card [...]

Loss Mitigation Isn’t Working One of the things that I love about my job is when I get to talk to people that are on the “inside”.  What I mean by the “inside” is someone that is working for the banks.  A disgruntled bank employee. A pissed off loss mitigator.  Someone who decides whether or [...]

Walkaway Consequences Please consider: Snow Job: Strategic Defaults in an Era of Negative Equity As more than a million people filing bankruptcy every year learn, life continues even after their credit scores are trashed. They can still buy cars on credit. They still have credit cards (secured) and debit cards. They can still rent apartments and houses. [...]