I am sure there are numerous cases of illegal or unethical behavior by banks. But there are just as many cases of people who lied or misrepresented their financial situation to get a loan from the bank.

From a balanced point of view, you could say that there are sometimes honest people who cannot afford to keep up with their mortgage payments, but are trying their best. They just need some more time from the banks, or a little relief/help courtesy of the ObamaNation. Foreclosure is very harsh and is more than they deserve… Here are some suggestions/ideas/methods that could help them.

Unfortunately, this article hints to some potentially unethical methods used by people to cheat banks, thereby turning the coin to the other side. What they do is not any better than what it calls “the money hungry and ruthless banks”. I specifically mean the vague statement:
“the options for those homeowners who have decide that they have had enough with the “pleasantries of home ownership” and who now wish to secure a “short sale” on terms that they can swallow and walk away with a sense of calm.”

Roughly translated into English this means – People who decided they don’t want to pay the banks back what they ageed to, and decide to trick the bank into losing hundreds of thousands of dollars, while still ending up as the owners of the same home.

Many people stupidly believed that housing prices would rise foreever, and bought houses they couldn’t afford assuming they could use “creative” refinancing to avoid having to pay for them. It is hard to be sympathetic with someone who borrows money and loses it on a bad investment. That is, however, what the Bankruptcy Code addresses. But if someone’s income is never likely to be high enough to support the house they live in, why shouldn’t the bank be ruthless. Had the person been playing the stock market, the lender simply forces the sale of the stock when the speculator can’t make a margin call.

The banks were equally corrupt (they passed off the “NINJA” loans are “AAA” rated bonds), but its hard to be someone who was “playing the market” and lost his bet.