Thing is, a 10 to 20% crash isn't going to cut it. QE and ultra low interest rates have completely distorted the market, and fair value is probably 50% or more.What are you saying here? The avg property in the UK is valued about £275k. The crash in 2008 was somewhere in the region of 10-15%, do you think we're going to see a 20% + crash?
2008 was about saving the banks. Today, banks are relatively safe. Ordinary people won't get any help though, and I expect banks to repossess, maybe with the option of renting said house back to the defaulter. This would be a very soft option, but theoretically could work as interest rates continue to climb and QT progresses.