Deadbeat homeowners being portrayed as victims

Yeah, those dastardly banks are tempting targets when it comes to the foreclosure mess. They're mean, cold, incompetent - whatever. But let's also not forget that the main reason banks foreclose on properties is because homeowners haven't kept up with mortgage payments, in some cases for two or more years. That's why the investigation by 49 states into how lenders verify foreclosure documents is more than a little suspect - as in trying to skewer the banks in order to make political hay (I know, hard to believe). From the LAT:

More than half of all states, including California, normally process foreclosures outside of the court system and so are not directly affected by this issue. However, when lenders begin the non-judicial foreclosure process in California, they must file a declaration that they are in compliance with a state law requiring them to first contact or diligently try to contact the homeowner to discuss options other than seizing the home. California Atty. Gen. Jerry Brown has said he wants to determine whether lenders are complying with that California law.

Now it's certainly true that some homeowners were hoodwinked by mortgage lenders. But many others were unwilling to recognize that they couldn't afford to buy a home. These folks should not be portrayed as victims. From CNBC's John Carney:

There is little evidence that banks are engaged in any systemic practice of throwing people who do not have mortgages or are current on their mortgages out of their homes. The typical person who is fighting foreclosure on "show me the note" grounds is someone who has stopped making payments on their mortgage but refuses to surrender their house to the bank. Some of them may not even be suffering from financial hardship--other than having taken on debt that they cannot afford.

As for the renewed push to modify these mortgages, the reality is that many struggling homeowners are beyond modification - the numbers simply don't pencil out. That's why modified loans often get pushed back into the foreclosure file. So please, let's keep the current brouhaha over bank mismanagement in some context.