People with bad credit were pissed when all the houses were flying off the market and they couldn't get in on the action. Lenders responded by offering these buyers adjustable rate mortgages, and they took them.

The interest rates went up, and the price of houses dropped, and now people who gambled on getting these adjustable rate mortgages are in the suck.

They can't afford to pay their bills and they can't sell their houses without taking a loss. This alone means the lenders are taking it in the pants and mortgage companies have already went out of business because of this.

What do Democrats want to do about it? They want to force lenders to reduce the mortage amounts to what the homes are now worth, they want to freeze the rates for five years, and stop forclosures.

BTW, the majority of the forclosures taking place aren't from buyers not being able to afford their mortgage, its buyers jumping ship now that they see their house isn't worth as much as they paid for it. Rather than keep their end of the deal, they're dumping it back on the lender.

Speaking of keeping your end of the deal, these measures to "fix" this problem make no sense to me. They penalize the party that kept their end of the deal for the benefit of the party that won't keep their end of the deal.