As an interesting note, I read in the Atlanta paper last week, that nearly half of the notices sent out about refinancing came back undelivered, it seem that a very, very large part of those so called arms were investors gaming the system.
No question about it, especially in certain markets. But the number of undelivered default notices is only an indicator. I have people in my own neighborhood who have simply thrown the keys through the door and abandoned their properties. Reminds me of earlier RE market crashes — Houston, Los Angeles, early 90s.