With housing prices plummeting, the house being auctioned by the bank, and still owing a lot of money to the bank, what are some solutions? ?

I saw a news report stating that there are no regulations in the country allowing individual citizens to file for bankruptcy; moreover, even if it’s one’s only home, it can be seized if they are unable to repay their debts, and in such cases, low-cost housing may be provided until the debts can be repaid over time.

Is it real or fake? It would be great if housing prices dropped significantly. EL

It will inevitably drop sharply; how can we prevent that? It would be best to discuss this by referring to the precedents of countries like Japan! ! !

Why has the amount of RMB printed each year dropped so sharply?

I want to ask what to do after a sharp drop? ?

Will housing prices fall? Not in the near future, I guess

Look at what happened after the U.S. subprime mortgage crisis: The fiscal policies adopted by China and the United States following that crisis. The intervention measures taken by the United States during the subprime mortgage crisis. Since the outbreak of the subprime mortgage crisis in the United States in March 2007, from the credit crisis to market fluctuations, from the financial system to the real economy, and from the United States to Europe and Asia as well, there has still been no overall improvement in the situation. To address the major challenge posed by the subprime mortgage crisis, U.S. agencies such as the Federal Reserve and the Treasury Department implemented a range of extensive measures, including traditional policy tools, innovative liquidity management techniques, economic stimulus packages, reforms to the financial regulatory system, and the passage of the Housing and Economic Recovery Act. (1) **Intervention at the onset of the crisis: Traditional policy tools** Although U.S. agencies and departments had already recognized the market risks associated with the loose lending standards and predatory lending practices in the subprime mortgage sector prior to the outbreak of the subprime mortgage crisis, they failed to take any appropriate action. It was not until March 2007, when the subprime mortgage company New Century Financial filed for bankruptcy, that the subprime mortgage crisis began to attract widespread attention. As subprime mortgage risks became more apparent and default rates rose, this had a direct impact on the financial institutions that issued such loans, affecting also hedge funds and investment banks that held subprime mortgage bonds. During this period, the Federal Reserve employed all traditional monetary policy tools and corresponding policy measures to carry out comprehensive intervention in financial markets. 1. Open market operations to inject liquidity. 2. Lower the federal funds rate. Despite inflationary pressures, on September 18, 2007, the Federal Reserve reduced the federal funds rate from 5.25% to 4.75%, marking the first rate cut since June 2003. Since then, the federal funds rate has been lowered several times, most recently to 2%. 3. Reduce the discount rate. On August 17, 2007, the Federal Reserve decided to cut the discount rate by 0.5 percentage points, from 6.25% to 5.75%, and temporarily extended the discount period from the usual one day to 30 days, with the possibility of further extension as needed. Meanwhile, the collateral for discounted loans includes various assets such as mortgage-backed securities. By August 30, 2008, the discount rate had been lowered more than a dozen times, resulting in a significant increase in the balance of discounted loans and providing substantial liquidity support to the banking sector. (II) The Federal Reserve’s innovative liquidity management tools: As the crisis spread and intensified, the Federal Reserve introduced three new liquidity management tools one after another after December 2007. 1. The term auction financing facility is a policy tool that provides loan financing to qualified deposit-taking financial institutions through tender auctions. Since December 2007, the Federal Reserve has carried out such operations 2-3 times per month, with each operation involving an amount of around $30-80 billion. 2. The Primary Dealer Credit Facility is an overnight financing mechanism designed for market dealers such as investment banks, aimed at providing assistance to these dealers in emergency situations so as to save companies on the verge of collapse. 3. Regular securities lending facilities are a financing method that involves selling highly liquid Treasury bonds to market traders through bidding processes in order to purchase other collateral assets; these traders can provide federal agency bonds, mortgage-backed securities, and other types of non-federal agency bond assets. Its term is generally 28 days, and it can be used to improve the balance sheets of financial institutions such as banks, thereby increasing liquidity in financial markets; it is still widely used to this day. In addition, the Federal Reserve has also strengthened cooperation with the European Central Bank, the Bank of England, and others to ease the funding demands in currency markets around the world. For example, it established currency swap arrangements worth $20 billion with the European Central Bank and $4 billion with the Swiss National Bank, in order to stabilize dollar borrowing rates in offshore markets. (III) Consensus between Congress and the President: Economic stimulus package. In response to the worsening subprime mortgage crisis at the end of 2007, in addition to the Federal Reserve, various U.S. agencies introduced a series of measures to support the mortgage market, which ultimately led to the establishment of an economic stimulus package worth $150 billion. In December 2007, the U.S. Treasury Department took the lead in proposing a market rescue plan that was approved by the president; this plan involved negotiating with lenders, investors, and others to freeze adjustable-rate mortgages issued within two years, thereby reducing the pressure associated with home loan repayments. On December 20, the president signed the Mortgage Debt Relief Tax Relief Act, which provides tax relief to homeowners to assist them with reducing their mortgage payments and enhance their ability to service their debts. In February 2008, the United States, in collaboration with six mortgage companies including Bank of America, Citibank, and JPMorgan Chase, launched the \"Life Line Program\". This program was aimed at homeowners whose monthly mortgage payments were more than 90 days overdue, and it allowed such homeowners to apply to their mortgage lenders for a 30-day extension. After months of deliberation and discussion by the president and Congress, a consensus was finally reached on an economic stimulus package to address the crisis. On February 14, 2008, President Bush signed a bill totaling approximately $168 billion, aimed at stimulating consumption and investment through substantial tax cuts in order to boost economic growth and avoid a recession. The main provisions of the bill are: taxpayers with an annual income of less than $75,000 will receive a one-time tax refund of $600 ； For those who file taxes on a family basis, if the family’s annual income does not exceed $150,000, each family will receive a tax refund of $1,200 ； Families with children will receive an additional tax refund of $300 per child. In addition, taxpayers with an annual income of over $75,000 or families with an annual income of over $150,000 will also receive a partial tax refund. At the same time, a large number of small and medium-sized enterprises can also receive tax incentives totaling 50 billion dollars. Furthermore, the plan increases the **maximum limit for mortgage holdings by Government-Sponsored Enterprises (GSEs)**.

I don’t understand what a housing price crash entails How does it collapse? Why give the house to the bank after the collapse? ?