If you borrow money from a bank / credit card, are you responsible for repayment?

I asked a question earlier this morning about this same issues. Some one listed a bunch of points that said that I was wrong. Here are their comments and my responses. Who is right?

FH: It is about the banks being deceitful in their practices to get the homeowners those loans.

It will be bad if the banks seize the properties. First off, these people will have nowhere to go.

BOB: What a bunch of BS. These people can go rent a apartment. Which is what they should have done in the first place.

If the person is too ignorant to understand the terms of the loan, they should have done the following:
1) Hire a lawyer review the papers
2) Have the lawyer or bank explain the loan in plain english
3) If they do not understand the loan terms, they do not sign the loan papers.
4 hours ago

FH: Secondly, the people who live in the homes around the foreclosed will see a dramatic decrease in their property value, over the decrease that has already shown over the past years.

BOB: The value of the home is only relative unless you go to sell it. Taxes are collected on the relative value. If the value of the neighborhood goes down, you can get your taxes lowered by showing this.

If and only if you want to sell in a depressed market do you lose value in the home. Over 90% of the people are making payments on time. It is the bottom 10% of society that is dragging the economy in the toilet.
4 hours ago

FH: These people were victims of falsified securities from the banks, who knew what they were doing, and therefore these people need someone to stand up for them.

BOB: If you are too ignorant to understand what is going on, you deserve what happens to you. That is why we have Lawyers to go through these things and advise the client. Most people don’t want to spend the money on an attorney. So whose fault is it that someone is ignorant?
4 hours ago

FH: Also, some of these people are people who nearly or did pay off their homes, and the banks got them to refinance knowing that the subprime mortgage market would spill over, and now these people are upside down.

BOB: Incorrect. The bank offers loan products. These people went to the bank and said I WANT TO BORROW $ 100,000 to pay off my credit cards, car loans, make repairs to my house, etc.

The bank gave them money in exchange for the person putting their house as collatteral. If you don’t know what that is, look it up in a dictionary.

The person failed to pay the loan under the terms. So who agreed to the terms of the loan. The person who WENT to the bank and asked for a loan and willingly signed the papers. The bank did not force them to sign the loan papers.
4 hours ago

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