People did not reasonably plan against that possibility, but that's what happened.
Since you are undoubtedly in a fine financial position at the moment it's time to move into the stock market while it's bottomed out (we hope) and scoop up bargains that will make you ridiculously wealthy in a decade or so.
The drop in value is just a paper loss unless you have to sell.
The problem isn't value, its that folks borrowed money that they had no ability to repay.
umm, could you have said —— that I think giving home loans to people who cannot afford it, sounds like a really bad idea to me? And illegals to boot, naw, I don’t think that makes good sense for the country.
If you could you would definitely not be congressional material, way to smart for that job.
“Seriously now, when was the last time you saw housing prices all over the country drop an average of 40%?”
My home in Glendale CA dropped over 50% in the 90 crash from $750k to $350k.
10 years later it was back to the $750 level went to $1.2mil last year and is now down to $900k, so what, prices go up and prices go down but the government has no right to save anyone from defaulting on a mortgage.
No matter what the price if the house is after forclosure the origional squatters shouldn’t be allowed to remain there.