Foreclosure crisis or stupidity crisis?

I know that there are some people out there who have lost their homes through no fault of their own, but it seems the media just can't find them. I was watching the rocket docket the other day. That's what they call the foreclosure court in Florida, because they hear so many cases in one day.

The reporters were interviewing some of the people who were seeking extensions in those cases. Typically, they were people who were trying to live outside their means. Take for example this case.

The reporters actually went to the home that is being repossessed. It was a lovely four bedroom in a very nice area. There were huge marble columns leading from the family room into the kitchen and lots of tile, marble, and chandeliers. The lawn was perfectly landscaped. The gentleman who took out the mortgage on this home says that it became difficult to make payments when he lost his job. About the time he found new employment, his wife's working hours were cut. So in April of 2008, they just quit making mortgage payments.

He says they like it there and don't want to leave. Who wouldn't like living in a house like that? But most people realize that that style of living is a little beyond their means. When I found it hard to make payments, I'd have put the house up for sale and tried to find something a little less oppulent. Ah, but while they were enjoying living there rent free so to speak, real estate values dropped. They now owe more on the home than it's appraised value. His wife says she doesn't want to pay a mortgage that's more than the house is worth. He says, "You know, you kind of expect to build up equity in a home." Well, duh! You do that by making the mortgage payments, doofus!

In essence, what these people are saying is, "We're going to stay here and we shouldn't have to pay the mortgage we promised to pay when we signed all those papers. We should have equity in this house even though we haven't made any attempt to make a payment in over a year." Foreclosure crisis or stupidity crisis? The judge granted their request for an extension -- maybe they're not so stupid after all.