How soon they forget. Wasn’t that the cause of the real estate collapse in 2008?
It was the first domino anyway. The leverage on top was the real damage
No, it was ARMs with no payments for 6 months and the incessant push by media to buy a house now or you'll never be able to afford one. My boss was telling me at the time I needed to buy a condo even though he knew I couldn't afford it. A condo where I lived at the time was $500,000 and it wasn't very nice - its one of the earliest examples of a pod in the area.
Also divorces. Spouse wins the house in the divorce and can't pay the mortgage because there aren't two incomes anymore.
I don't think that was as big of a factor because I doubt the spouse wasn't able to keep the house after the divorce was finalized and they got the lawyer's bill.
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