[Travis McGee]

If the real estate market turns down, watch out. Millions of Americans who bought homes (often 2nd "investment" homes) will be upside down when the monthly ARM payments ratchet up. The spillover is going to be ugly when they start defaulting.

Not to mention the fools who HAD equity in their homes, but decided to take out a fresh (ARM) mortgage, to buy the big SUV, the giant plasma TV and so on. FOOLS! And millions of them....

[vrwc0915]

Everyone told me that I was stupid to put 20% down on my house.

I used to be a deputy and I imagine that a lot of local sheriffs will simply stop doing the evictions once they become widespread, foreclosure papers are one thing but possession is 9/10ths. Like we saw on another board in Arg. is the bank going to physically remove people from their homes? I don't think so

[Toddsterpatriot]

If the real estate market turns down, watch out. Millions of Americans who bought homes (often 2nd "investment" homes) will be upside down when the monthly ARM payments ratchet up.

One sure way to get the real estate (and stock) market to collapse is to hit the economy with a nice dose of deflation. Kinda hard to pull equity out of your house when the value drops every year.

Deflation kinda sucked the wind out of the Japanese market not to mention our NASDAQ.