It's b/c of Fed and government policies that no one is lending. They prop the real estate up at the overpriced level so whoever is buying will have to overpay it. When you overpay, the chance of the loan goess toxic is high. Banks know it, so they are justifiably not willing to lend. Government needs to get the F out of way and lets market force set the price of assets. That way the capitals can flow where there is a profit to make. Government's intervention is #1 reason why there's no recovery