While the value of the houses was too high the big problem was the morgage companies writing loans to people they knew would default.
Over the last ten years I saw this happen to a few people I knew, had nothing to do with the value of the house itself, they simply were in over their head. Every time I asked myself the same question "How the heck did
you get qualified for a morgage that big?", when I saw the house I asked myself "you paid
how much for this?".
Was a time when you stood a slim chance in he!! of buying a home that was more than two ~ three times your annual income. Not to mention a good credit history.
When I saw 7yr car loans pop up a couple years ago...
