1. Yes! I believe the options ARMS and the other ARMS will be a problem. within this includes the jumbos of Cali and Las Vegas, etc...

2. Given the heads up, the thought is that they SHOULD be a able to mitigate the impact, but it seems the leading foreclosures now are on people WITH jobs, which makes me worried. these people were probably all paying the minimum, and therefore creating negative amortization these past few months, which has cushioned the foreclosure rate... but will inevitably still lead to foreclosures.

what is the variable at the moment, in my opinion, is the rate at which the ARMS will reset to... that could make or break a lot of foreclosures in the next few months. honestly, i don't see a way to keep rates low for much longer, since we've already printed a tremendous amount of money. repeating the same thing again would devalue so much that it'd take a decade or more before our housing prices come back up and individuals' "worth" is restored... HARD TIMES WE'RE LIVING IN!