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There is a solution to the mortgage foreclosure crisis, but it is not a quick fix. And the first order of business is to more completely understand what has happened and why. The real villain here may not be who you think.

The reason the solution to the mortgage foreclosure crisis is not obvious is that the problem is not obvious. Unless one is personally involved in a mortgage problem, all one will hear is the constant haranguing by the financial gurus and media talking airheads that people made poor loan choices and now cant pay their mortgages. This is not the whole story-nowhere close:

The real problem behind the mortgage fiasco appears to be actions to de-regulate the financial industries in the past thirty years. Once Congress decided to let the financial sector regulate itself, the proverbial fox-in-the-henhouse situation began to occur. As the Federal Government encouraged the loosening of credit to prop up an economy that showed signs of damage from a torrent of globalization and outsourcing, financial markets took that as tacit permission to play fast and loose with everybody's money. Perhaps it was that sign that caused the current problem. Certainly, a lack of business ethics contributed greatly. Once again, Middle-America pays for the mistakes, theft and simple poor judgment of the Big Boys. Mortgage fraud has been rampant and semi-respectable in the banking industry for several years. This is the dark underbelly of the foreclosure problem.

Statements that deadbeat borrows created their own problems is simplistic at best and the protestations of the greedy guilty at worst. Of course, there will always be deadbeat debtors. However, much of the foreclosure mess revolves around speculators-those that bought real estate to flip', using easy credit and balloon mortgages to parley a piece of their inheritance or 401(k) or even a loan into what they hoped would be a good investment. Many of these investors-I wont call them homeowners because they are a different breed entirely-used money gained from speculative stocks to purchase Mc Mansions, with a little down and an assumption that they would turn it over at a huge profit before the balloon payment came due. Victims of the Dotcom bust constitute the first wave of foreclosures-their overgrown homes sit, unfinished and deteriorating in many upscale developments. Even among these more savvy investors, mortgage fraud found victims.

That these borrowers have been abused by the system is obvious,

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