Who is more responsible for the housing market collapse; the lenders (banks) or the borrowers (home owners)?

Asked by Trulia Dallas, Dallas, TX Mon Feb 18, 2013

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John Juarez’s answer
John Juarez, Agent, Fremont, CA
Mon Feb 18, 2013
The blame can be assigned to those who fell victim to the belief that the price of homes always moved upwards without pause. We know better. Any yet, too many lenders, buyers, and agents behaved as if the house that is sold today will automatically be worth more tomorrow…and the next day, even more. There is plenty of blame to be shared!
2 votes
Nina Harris, Agent, Williston Park, NY
Mon Feb 18, 2013
I would say the banks and our government. Let's face it......the general public was lead to believe that anybody could own a home and they didn't even need a down payment or prove source of income. Who wouldn't want to own their own home?
2 votes
Holly, Both Buyer And Seller, Pipe Creek, TX
Tue Feb 19, 2013
The Federal Reserve, so the banks (and their respective families.)

The Federal Reserve always knows that it's creating a bubble of some sort.

Now, they're creating a bond bubble just like the housing market bubble.

Our Congress, also--for allowing "loose lending" by passing legislation that would hamper the free market and critical lending practices (under the direction of Bill Clinton, an initiative staged to help the "underprivileged")
1 vote
Michael Brow…, Agent, Allen, TX
Tue Feb 19, 2013
The cause of the housing market collapse was attributed to a long run of low mortgage interest rates, very loose lending and down payment requirements. This allowed those who normally couldn't afford a particular mortgage amount to get approved and buy a home, and in turn, they had to run out any buy the Escalade, the jet skis and go travel the world, and BOOOOOM!!!!!!! The bubble burst, they got laid-off and the madness began!
1 vote
My NC Homes…, Agent, Chapel Hill, NC
Tue Feb 19, 2013
While both sides share blame, in my mind there's little doubt that the lenders combined with Wall St are the primary cause of both the housing market as well as the financial collapse. Every CEO and CFO who was in office at the end of 2007 should b rotting in a jail cell as I write this. Instead not a single one is and not one missed a bonus payment. On the flip side millions lost their homes and money and millions more continue to feel the effects to this day.
0 votes
Josh Barnett, Agent, Chandler, OK
Tue Feb 19, 2013
The market as a whole, all parties involved ran with it, it would be hard to single out only 2 of the parties involved and then to make a stance that one of those two are more at fault than the others.
0 votes
Mark Danoski, Agent, Berlin, NH
Mon Feb 18, 2013
Both. The borrowers to a small extent (buyer beware), and the lenders to a large extent. Afterall, the lenders, and not the borrowers initiated it.
0 votes
Kenneth "Ken…, Agent, Dallas, TX
Mon Feb 18, 2013
I agree with Lynn. BOTH.

Turtle Creek Realty
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Feb 18, 2013
Simple answer : Both However you neglected include economy, our government, major companies.

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer

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