The housing finance crunch can be alleviated now, and easily. It requires monetary legislation - a primary purpose of our government - to maintain a level playing field during difficult times.
ROLL BACK (to starting rate) ALL INTEREST RATES ON VARIABLE INTEREST LOANS WHICH PUT TOO MUCH FINANCIAL STRAIN ON MARGINAL HOME PURCHASES.
For the future the government needs to insure that lenders do not allow purchasers to buy to much of a mortgage relative to their incomes. The buyer is done no favors even if he thinks it is good to buy to the limit. Too many circumstances can turn a good thing into a financial horror story. Former Realtor