Banks Forcing Foreclosures?

In the early part of 2008, were banks forcing people into foreclosure? The story I am about to relate is only one story and involves one local bank. So take this story for what it is worth.
My son had purchased his first home, in the central valley in California, just before mortgages started going south. Against my advise he got into the home on an adjustable rate type mortgage, and he assured me that after the first year he would refinance it into a 30 year or 15 year fixed mortgage. After the first year he went to the bank and attempted to get a 15 or 30 fixed mortgage. The bank informed him that he was locked into the adjustable mortgage for the first five years and if he refinanced out of it, there would be a stiff penalty. He realized at that point that the agent and lender had lied too him regarding his loan, and to make matters worse the individuals involved were no longer employed by their respective companies. He thought about filing a complaint, and decided not to as the time and effort, coupled with the fact that it was his word against theirs, and he had signed the loan documents, his first lesson in the school of hard-knocks, he felt filing a complaint would be a long hard road with a dead end.
In March of 2007, he again went to the bank and attempted to negotiate with them to adjust his mortgage, as he no longer worked in the area and could not afford the home and gas prices having to drive the long distance to work. The lender told him no, they would not alter the agreement or consider a refinance or any other change. The lender then told him, if you can't make the payment let us know and we can start foreclosure proceedings. The lender actually told him that it was ion their best interest to let the home go into foreclosure, than to alter the mortgage to allow him to keep the home. Again, I ask the question, did the banks and loan companies force the country into the foreclosure crisis, for their own profit? Is the Government's bail out of these institutions to be considered a payoff for the loan companies part in creating this crisis? I don't know, but from this experience it seems that at least the loan companies, seem to be the only one,s profiting from this situation.

Here are some common sense tips on avoiding foreclosure;

1. Before buying a home, make sure you can afford it. Maintenance, up-keep, insurances, recurring bills, gas, electricity, cable TV, garbage pick-up, and the purchasing of those items that were not needed when you were a renter. Make sure you have a savings built-up to allow you to survive any major disruption in your life that may occur, usually savings that will continue your life style for at least 3 months and preferably 6 months.
2. Read your mortgage, know what it says and ask questions regarding the term of the loan, caps on the increases of the loan rate, and any penalties associated or that may pop up if refinancing is an option.
3. Know your legal rights and have a plan in place, for actions to take if you should find your self in foreclosure or feel that you may end up in the foreclosure process. Having the plan in place ahead of the situation insures that you have not forgotten something due to the psychological pressures that can be associated with the foreclosure process. After all, we insure ourselves from fires, earthquakes, floods, death, and injury. We insure our homes, cars, boats, motorcycles, and all the personal property we own, and we protect ourselves from civil legal action. Your best initial insurance against foreclosure, is planing and not getting into a mortgage you can't afford, the second is to have the knowledge about the foreclosure process, and what you can legally do to protect yourself.

for more information on how to protect your self from foreclosure go to, FORECLOSURE DEFENSE SECRETS