Sneakers41-I know that there were banks in South Florida and I am sure all over the country that offered no doc loans. These were no documentation loans in which you did not have to offer proof of income.
It is crazy to imagine that a bank is not even verifying income. This led to a lot of mortgage fraud because people were listing all kinds of income and qualifying for upscale homes.
These people wanted to quickly flip these homes and get a substantial profit. While that was happening part of the time, when the real estate market crashed and flipping a home was no longer an option, these homeowners drowned.
Some people owned multiple homes and had to face multiple foreclosures. The homeowners got greedy and many lied in order to qualify for homes that were clearly out of their price range. So while the banks were not totally innocent, the homeowners also shares significant blame. Many of these people should not access to a bailout foreclosure.