Originally Posted By: summerrun
...the only legitimate loans for the near future are for people who can prove their income and have 5%+ down payments and do not have Jumbo loans.


Well, that sounds completely unreasonable.

I'm still surprised that home prices are holding/have held up as well as they have. In Whatcom County, it has been more of a plateau than a serious drop for most people. There are still POS houses on the market for way too much money. They aren't selling fast but some of them are still being sold. I still think we'll see a significant drop in housing prices because a lot of stuff is still to be worked out.

How would you feel if you got into a 5 year ARM that was interest only? Now, you have a loan for more than your house is worth, you've paid off none of the principle and your payment will increase when your rate gets adjusted? Now, muliply that times hundreds of thousands of homes. Implosion. Add in some record high consumer credit card debt and skyrocketing energy costs. Rome is burning.