Yes, that's right the mortgage companies and their henchmen caused the foreclosure crisis that is affecting everyone in the United States right now. I'm not saying the homeowners are blame-free, but the actions and the practices of the mortgage lending industry set-up many homeowners to fall into foreclosure. Thousands of homeowners are trying to stop foreclosure process right now because of the runaway lending practices from the last eight years.

The very types of mortgages offered to the homeowners are evidence that the mortgage companies set loose a runaway train. Now that train wreck of foreclosures are sweeping our nation right now. The types of mortgages that were statistically destined for failure include these 3:

(1) Interest Only Loans (2) 80/20 Loans, AND (3) Self verification of income.

(1) INTEREST ONLY LOANS: this meant a buyer's mortgage payments did not put one red cent toward equity. This type of loan was offered to bring down monthly payments and most buyers, overwhelmed by the amount of paperwork at a mortgage closing, were unaware none of their money went to the principal of the home. These loans, by bringing payment amounts down put buyers in to homes in expensive housing markets they could not otherwise possibly afford. Other cases, mortgage officers outright conned unsuspecting people into more house then they could afford.

(2) The 80/20 loan: what a classic twist, we leverage the home for a 100% with no money down on the house, but thousands paid in closing costs. No equity was disaster leading to the foreclosure process.

(3) NO INCOME VERIFICATION LOAN: What can I say about this one, the loans name says it all.

The loan officer would tell you nothing down on the house, but when you would receive the closing documents you would see thousands of dollars towards shady fees that a person couldn't make out if they even had a Harvard law degree. So buyers put down an amount of income they made and mortgage staff did not verify it. These no money down, interest-only and no income verification methods produced millions for the mortgage companies and what did the homeowner receive? Houses they couldn't afford, a ride on a runaway train headed straight for the foreclosure wreck we are in now.

But let's look at what the mortgage companies got out of it. The Loan Officers received their commissions; the mortgage companies received their fees then sold the mortgage to an investor in China, Japan or Europe. When the homeowners go into foreclosure does anyone go back to the loan officer and ask for the commission back, based on their unethical and unsound business practices? No. Does anyone ask for the fees and commissions collected by the mortgage companies? Nope, not one penny back. The biggest concern by the mortgage industry was getting their money from the mortgage closing process and their payments thereafter. This market has mostly collapsed on itself now, the sub- prime market where many of the mortgage company bottom feeders lived thankfully have gone out of business with the sub-prime market shut down in August of 2007. Problem is the full weight of this foreclosure crisis is still falling on homeowners now.

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