posted on Feb, 10 2007 @ 11:05 AM
Ive been looking at this for a bit now as it would impact my area quite alot.
The SF Bay Area has some really expensive real estate. The price of a 1150 sq. foot home in a suburb like Palo Alto would make you gag (think 1.2 to
1.5 million) and alot of people not being dot com $$$$$$$$$'aires bought into markets they could not afford using negative am. mortgages. If the
market drops there may be huge defaults as they will not have the cash to cover the drop in value of the home.
Alot of the loans will come due in the next 2-4 years and it could get really bad if home values drop at all.