What keeps people from just moving into a home after getting a loan?
People typically have to make a 20% down payment in order to get a mortgage, so on a $300,000 home, they will be out $60k right off the bat and then the lending institution will resell the house at the original price. What happened in 2008 is that people didnt have to qualify for loans and they often didnt need down payments, which created hyperinflation of housing prices.