That doesn't make me feel any more sympathetic towards the borrowers. "I was too lazy to read the contract" doesn't hold up as a valid excuse in my book - especially given the gravity, nature and impact of the agreement the borrower is entering into.

I don't see an alternative viewpoint that doesn't create a number of ethical and beauracratic problems either. Let the buyer beware. In this case, also let the lender use some common sense discretion. And if both the buyer and lender fail to do those things, they should both lose their shirt in the deal.