The entire process you outlined is, as you suggest, is disgusting. However, you do have to separate those buyers that are victims, and those that were also enablers - THAT would be the objective may to discuss this situastion.

Further, if you accept the premise that this process is horrifying, then you have to draw the same conclusion as to the way the US Congress passess legislation. "Hurry up and pass the bill so we can have time to read it". SHOCKING RIGHT?

Further, there is no mention of Fannie Mae and Freddie Mac (government run institutions, remember) that are at the heart of this meltdown also. It is imperative to tell the WHOLE story, otherwise you do a dis-service to finding the remedy and solution!

This is the evil of capitalism, they had people believe in if you work hard crap, many American are to Naive to really get a grip on fact , bottom line there is Zero morality and ethics in capitalism, it is dog eat dog and people are led to the slaughter willingly or unknowingly.

First, the disclaimer: I know it's hideous and cruel. I don't like it. There, I've said it. Now segue back to the "mountains of toxic debt underwritten by the U.S. government and the equally toxic derision levied by them crackas over at the Rep Party. Now, how do we gather all this together in an article about the foreclosure mess? We don't, unless you're a muck-racking lefty like Mr Taibbi. The truth is too uncomfortable for people to embrace: The fat cats of the banking/mortgage industry are sitting on that mountain of toxic debt and could actually cease being fat cats in a nanosecond. Should THAT happen, we immediately go to 25% unemployment. Those of you out there who are deep thinkers can easily make the connection. To say that the situation is ugly is a vast understatement but if we are to have reportage on it, reporters had better stop the inciting to riot routine, get down to brass tacks and do some leg work on behalf of a terrified and confused public.

If ANY of the homeowners had been paying their mortgages (or even had tried to pay their mortgages), this sort of kangaroo court would not exist. The alternative is to reward delinquents who are violating their contractual agreements and that is unacceptable to most Americans. Particularly since those who are not paying their mortgages also tend to fail to maintain their properties (not mow the lawn or clean up the weeds and yard trash) which damages the property values for the whole neighborhood.

Obama seems to understand the basic mechanism here while Taibbi, normally a good reporter and always an accurate reporter, seems to be ignoring the other side of this story.

Lee Nason
New Bedford, Massachusetts

Well good, everybody's happy now. You all have the miscreants where you want them, in an angry broadside. That'll show them b*****ds. They count on this, you know; people swatting at mosquitos while the real bloodsuckers go to work unhindered.

This must be why you are all the "little people" as Leona H once said.

Taibbi writes good criticism, and colorfully at that. But does anyone remember the quiz show, years ago, called "Truth and Consequences"? What confuses readers is confusing the individual, horrific story of default with the larger issue of national politics. We cannot afford to get bogged down in the symptoms of the disease while ignoring it's roots. Vote for 1 public funding of all elections 2 a flat tax, 3 strict financial regulation and reform, 4 mandatory civics instruction up to the 12th grade.

We need CNN or another news channel to pick this up and broadcast it to America. Many people today read very little and television coverage is needed to keep this country informed. Amazon.com removed a pedophile's hand book guide for sale shortly after CNN exposed the book's contents.

Loan modifications should be the mandated order of the day. However, certain profits, even for doing nothing, trump everything.

All of America loses until this happens.

Anecdotally, 95% of the Countrywide mortgages were fraudulent in their certifications and documents. People were steered and overcharged. Bonds backed by subprime mortgages were based on fraudulent securities representations and warranties. When all 50 Attorneys General initiate a fraud investigation, the presumption of innocence should be on the borrower.

These loans, having been created on a production line, having been securitized on a MERS production line, should be considered one-by-one on their individual situations when it comes to foreclosure court. Each situation is different and the paperwork must be examined.