If you knowingly pay $20,000 or $100,000 over list price in these areas like Portland, Boise, Reno, Austin where prices have gone up 40% to 60% in just a few years and if in 2023, 2024 that same person is underwater because of a housing crash I don’t think the individual or banks should be bailed out. Especially now when interest rates have moved up to 4.5% to 5%
The house you paid $500,000 for is now worth $375,000….. sit on it than. I guess you will need to wait 7 to 12 years for prices to recover.
After the 2007/2008 crash which was in fact by far mostly the banks fault people should know the risks of real estate.
2007/2008 was because of predatory interest only loans and the way lenders packaged and resold portfolios with risky loans
Versus
2022 came down to FOMO…fear of missing out. People in my area paying $500,000 for a slapped together cooperate shit build 30 to 40 year old house didn’t do it because they thought it was a good price. The insanely expensive rental market and people moving from California caused people to participate in this ridiculous housing market. However it was a conscious choice. Everyone knows it is ridiculous insanity so that means nobody should be bailed out.