I was sitting on my patio one day and notice that the walls of my house overhang the concrete slab. It is a cheap house but was wondering if this is the only reason. It looks like the wall is going to fall off the slab and the house will collapse.
It seems like that is the house siding and not the walls.
The walls/house framing will be fully supported by the slab/foundation(unless a semi has crash into it).
Siding is supported by the house framing and can extend beyond the slab or even cover it below the top of the slab.
Siding's only job is to make the house look good, and to keep some of the weather out.