If they would have had to put up 20% down to purchase very few would be in that condition.
When we bought our home in 1966 you either out up 20% or you didn’t buy a home.
It never should have changed.
We bought a house last August. We laughed at the amount the bank was willing to loan us (which was WAY over what we thought would make a comfortable house payment). We paid 20% down, got a fixed rate loan that was promised to stay at our home town bank and never be sold off. Right now our new house is worth less than what we owe, but hey, we plan on living here until its paid off anyway, and things change.
Of course we still own our old house too. But its paid off, and my brother in law is living in it instead of leaving it to sit empty. If things go completely crazy, at least we’ll never be homeless.
Too bad we’re in the minority when it comes to choosing what you can afford instead of getting what the bank said you can afford.