Posted On: August 22, 2007, 1:53 pm CDT

Posted By: GB

"The problem was that lenders would not work with the people who honestly wanted to work things thru, hence the resulting foreclosure when the homeowner was out of options."

A homeowner's options end when he chooses his loan. After that his only options are payment or forclosure.

As for losing your 10% in 4 years. That is a short time to be turning around your house, especially if you bought in an area that had a steady supply of new homes on the market. Your mortgage payments were supposed to be investments that returned income for you. They are payments that secure housing for you. If your 10% worked out to $20k, or $5k/year, that was a living expense. ( living in a house for about $400/month isn't so bad )