Problem:
Why banks have bad loans? For the most part I feel that it was the lenders who are the most responsible. They were willing to ignore the ability to pay on the loans in order to lend as much as possible. The lowering or even turning of the back on the qualifications of the borrower turned out to kick them in the backside. However, the borrower also has to take some of the blame by not knowing exactly how much they could afford. I know it is interesting to see as I am currently in the process of looking at buying a home. Explain.