pageoneresults - 2:31 pm on Aug 13, 2007 (gmt 0)

The borrowers couldn't afford the houses in the first place - they were only able to afford them with a loan that was subsidized in the front end.

And even then, they were probably stretching their budget waiting for this...

They were assuming that property values would continue to rise rapidly, and they would either flip or refinance (with another ARM) when their loans adjusted.

Then the music stopped.

Hehehe, it didn't stop, it just changed. Before it was a calming "everything is just fine" tune. Now it is more like a Bela Lugosi theme. ;)

And, with the changes that took place in Bankruptcy laws last year (I'm guessing they saw the writing on the wall too), we're going to have a lot of people here in California carrying a Monkey (Gorilla) around on their back. Their wages will be attached by the government and they will be forced to pay "what they can" to their Creditors. Its not going to be a pretty sight. Filing for Personal BK is not what it used to be. You "will" be paying back "what you can afford" for the rest of your life if need be.