Unfortunately, not always true. The couple in this article are one example of the situation many are in or will be in soon. You see, they have an ARM that started w/ a teaser rate. Their payment is now $3000 and will double when the ARM adjusts. They need to refinance, but they can't refi because of what the home is worth today. They can't afford $6000 a month. They'll probably lose the home and kill their credit.
Maybe I'm a jerk, but I don't feel bad for them. They knew what they were getting into. If they didn't consider the risks, that's their own fault. I guarantee they didn't need a $800,000 home.
Oh, yeah. If you do something stupid enough, you'll get yourself jammed up. But that's always been the case, hasn't it?
If I took all my assets and converted them to singles and had a big bonfire in the backyard, I wouldn't have any cash left for lunch-money. That's why I don't do it!