We live in a (mostly) free society, which carries the risk with it that things like this can happen as unfortunate as they are.

This hurts the site owner (discouraging people from coming back if they've left for a while for whatever reason) and hurts the users (people start to look less valuable just because they haven't been around, which is an inaccurate perception).

This event will likely change the inaccurate perception of RE investors and will be the first of many steps to irradiate the crooked gurus from our industry (Ok, that is fairly optimistic, but at least a great start!)

This is a great response..you have a very smart and perceptive wife J Scott if you dont mind me saying so.

Although we do live in a litigious society you actually have to do something wrong to be sued and lose.

Society is evolving into a place where you aren't able to trust anyone.

Lots of people have the perception that it's a "buyer's" market or they can steal a REO.

Some people will spend $10 to avoid $5 in tax; me, I'm one of the ones who thinks taxes are just the price of a (semi)-civilized society ;)

*The thought process of "I'm getting nothing from this anymore" is a perfect summary of our society as we are right now. 

It has to do with a combination of 1) each loan, or even property on a package loan requires a certain amount of work regardless of size, which makes small loans burdensome and 2) the perception that cheap properties are in rough areas or rough shape, which many banks consider risky.