>>I dont think (and the operative word here is “think” since I dont know) that there is any government code that will enforce what type of people move into a neighborhood. I think if someone can get a mortgage and make the payments, that’s their right.

I was thinking more “number” rather than “type” of people, I thought there was a 2-per bedroom limit dictated by code. You hear the term “single-family” residence and indeed in most real estate search engines there are options to search for “Single Family” and/or “Multi-Family”, so I assume there is a difference that is recognized by code otherwise why have a distinction and is there any consequence to violation? If not, let’s just drop the distinction.

>>On the other hand, with credit standards tightening, people who shouldnt really be homeowners probably wont be able to…

Very true and I’m sure if I just wait it out, the ARM will reset and one morning I will wake up and the house in question will be deserted with a short sale sign in the yard. It just unfortunate we had to take this long road back to sanity.