Reply #13: We will soon see what direction this will head, as there is a wave [View All]

[Ikonoklast]

of ARM's coming due this year, peaking by the end of the second/beginning of the third quarter. These are people that bought at, or very near the top of the market.

What are those people going to do when they cannot re-finance or fix their mortgage; cannot get a bank to loan them what they currently owe on a house that has lost value, leaving them with negative equity; cannot find a financial institution that is willing to loan out mortgage money, period?

More downward pressure on real estate values, more foreclosures, more price deflation in an already crashing real estate market.

More bank failures.