“of all San Diego mortgages issued in 2004, 80% were adjustable-rate, 47% were interest-only, and 27% involved no down payment.”

This is a quote from rich’s posts linked a few posts up. I had read this before, but I dont think it had really sunk in yet. One of the questions buzzing around in my head every time I read SDR’s short sale monitor, or see that graph about the reset schedules, is “how many can their really be.” The general media does an absolutly horrible job conveying the enormity of the situtation, (duh), but I guess I just didnt/dont grasp how many people are in trouble.
80% adjustable! 47% interest only, which isnt really even reseting yet! And how many of those 20% fixed rate loans are really backed by an adjustable second? Include that 2005, 2006, and the first half of 2007 had generally lower standards of loan quality, and I get a picture of a problem that is ALOT bigger than the general public understands. Imagine if 80% of the buyers in 2004-2006 walked because of no equity and reseting payments!
So what are fundamentals? They are something that apparently no one has been paying attention to for a very long time and we are gonna pay for it.