Mortgage Crisis - The bank's Fault? - or the Consumer?

I was reading a blog that said that the mortgage crisis is the bank's fault. I can't believe that somebody would seriously write this in a blog.

Let's see.. the definition of a Consumer, is somebody who consumes. Nobody put a gun to the consumer's head to buy. They all did so willingly.

There were no laws passed that said that the consumer HAD to buy houses, cars or consumers items.. they did so willingly.

IMO... if a person buys a house, they should understand whether or not they should be able to finance the property.. If you don't understand the contract, then hire a lawyer (or somebody trained in contracts) to help you understand the fine print.

I'm very surprised that the media is saying that the homeowner got duped by the mortgage companies.. That's ridiculous. That's putting the blame in the wrong place..

Buying a house for $250,000 is a big purchase. It deserves a great deal of attention, to understand the costs involved. A house has current and future costs.. A mortgage has current and future costs.

BUYER BEWARE: If you don't take the time to understand the costs involved, then you are at risk for making an expensive decision.

Here's what I would recommend to anybody buying a house.

1. Learn how much the house & Utilities will cost
   Take the time to gather all of the current utility bills, tax bills etc for the house you're looking at buying. See what the costs are.
   There are also down payment, closing costs, inspection costs etc with the mortgage.
   
   If you're clear on the costs, then there won't be surprises later on.
   
   
2. Learn and understand the mortgage contract
   Contacts are not easy to understand. You should NEVER sign a contract that you don't fully understand. Doing so means that you're vulnerable to whatever you agreed to.
   
   If you're not sure what the contract language means, ask a lawyer. This is a cost of due diligence. If you need to save up additional money to afford the lawyer, then take the time to do so.
   
   Ask the lawyer what the fine print means, and what are the things you should watch out for.
   
   A lawyer is trained in legal speak and will be able to give you advice that the mortgage company may not come forward with.
   
   
3. Learn about the fees and future/renewal costs of the mortgage.
   This is something you should also ask a lawyer. What are the hidden fees, if any? What are the fees should you decide to refinance, or sell the property?
   
   You might just ask the lawyer to itemize all of the potential costs that the contract holds.
   
   This may cost a few hundred dollars, but the lawyers analysis could save you a ton of hard ship in the future.
   

I don't believe for a second that the mortgage crisis is the bank's fault. It's not the mortgage companies' fault. It's the consumer's fault all the way. They made the choice to buy the houses in the first place.

Each and every consumer who got involved with a toxic mortgage made the decision to do so. They could have known what the costs were before they took the mortgage. They could have insured for mortgage with critical illness insurance, and life insurance..

There's enough information in the market place to make an informed decision. If the consumer DECIDED NOT TO TAKE THAT INFORMATION, it's their fault!