The FDIC has been kept busy for the past six years, dealing with thousands of similar loans. Each of the 500 banks that failed had multiple reasons for failing, and it was usually the myopic greed of management.
meanwhile we are bailing out the stupidity of homebuyers...i’ve got no issue with greedy foolish banks who made dumb decisions going south but why must we continue to pay for ignorant “homeowners” who should not have qualified for a $50000 credit card but got a $500,000 mortgage for a home??
sounds harsh but if you bought property in the late 80’s early 90’s you dealt with the same thing...bought my first co-op in 1990- three years later it was worth less than half what i paid for it...i had to suck it up and deal with it...