The largest majority were on private lenders like Countrywide Finance that weren't regulated into granting those subprime loans. They were manipulated into doing it by Wall Street greed and paid a heavy price to Goldman Sachs in the end.
No one ever mentions the "American Dream Downpayment Initiative" of 2003. Signed by GW Bush in that year and enacted in early 2004, it demanded that government lenders grant loans to first time homeowners with no downpayment and no interest if the buyer lived in the home for six years.
When those borrowers lost their jobs in 2007, they found themselves in a bad situation: Their home was worth les than they paid, and selling it would put them on the hook for the downpayment and back interest.
This is Bush after the signing where he proclaimed himself "The Homeownership President":
ADDI:
http://www.hud.gov/offices/cpd/affordablehousing/programs/home/addi/index.cfm
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