But then how will private equity firms be able to snatch up all that juicy leveraged property? What can’t be paid, won’t be paid. The banks don’t care, they’ll just write off the loan and issue a new one for the next owner after they foreclose the home. The real problem occurs when borrowers run out, in which case you just sell the house to foreigners who want to store their income in secure assets. No matter what happens, both renters and landlords will feel the pain, but banks will, well, make bank.