That type of irrational behavior could only be due to regulatory pressure.In portfolio lending, banks are moving away from 5/1 ARMs and toward 5 yr balloons, to give them greater flexibility to adjust rate/terms, or to be rid of the loan if they so choose.

There's too much irrationality in real estate to get yourself emotionally attached to any property you don't own.

I may be in the minority but I avoid scratch and dent for a rational or maybe irrational fear. 

Is the expected IRR at least in the low teens?

One, before the aqcuisition/sellout, I had ceased doing business with because their lending policies became irrational.

I check the data against what the others have said to make sure they are in the normal range and not just irrationally optimistic.

Probably the biggest concern is something irrational, like the banks just calling your loans after the 7 year term (even if you are paying on time).

It will cause you to make irrational decisions.

This thread has turned irrational.  

Things can stay irrational for a surprisingly long time so I wouldn’t necessarily assume they will come down this year or the next.Economic downturns are unpleasant times in any market.