I know a neighbor who wasn't making her home payments and lost her home to foreclosure. She then moved into a rather cushy situation where she lives in her brother's home while paying just a few hundred dollars a month rent to his girlfriend after her brother died. That lasted just over a year till her brother's girlfriend then died. During this time, she stopped working due to some ailment yet she always seems well enough to cook and clean for her grown son and grown nephew that leech off of her.
Now, after having run through more than six figures of insurance benefits from her brother's death while paying just 40% of what she paid prior to being foreclosed on, she now is at high risk of being homeless. The son of her brother's girlfriend (owner) is going to sell the home & she has continued to neglect her credit and finances while subsidizing the life of her 50 year old nephew and 40 something son. She is still not working and doesn't have any prospects. This is a woman in her 50's who doesn't plan well (even for her own financial safety). I am decades her junior and I know that I would never consider any of the choices that she's made. I still can't believe that this is how anyone would choose to live.
I speak of this woman because my two cents is that we are human and bound to make mistakes. Her story is just one of many millions of people losing their homes. However, only those who LEARN from their mistakes will be able to recover. No one put a gun to any borrower's head and forced them into a loan they couldn't afford. They didn't do their homework, read the documents, or misrepresented themselves. Those that lost their home because they were laid off of (truly) ill are a completely different story.
Some will recover and some simply won't either by their own (poor) choice, a lack of opportunity, or a devastating combination of both. But none of us as individuals or grouped should think that we can do the same things over and expect different results.