I hadnt considered that FSD, thanks. So basically these morgages are going to reset but the reset, thanks to the FED dumping rates and pushing money like a coke dealer, arnt really that bad. Hadn’t considered that in my OH S%$t! moment.

I wasn’t totally off base though, the option arms in there are still waiting to have their day in the sun. And those have a built in significant jump no matter what the rate, its called principal. (i know i know, you found like 2 people in BFE that are paying like they should be, but most arent.) Plus all the subprime fun.

I guess the other question that needs to be asked then is rate changes in the future. Were the LIBOR to go up again like it was before the pushing began, we would have increasing defaults as it rises. Not saying that would happen, just that the REALLY low rates sitting around right now will go away eventually. Maybe 5-8 years, maybe more. Maybe incomes will go up enough to cover the increases and it is a moot point. Home lending has never really been done like this, so their is no historical president to copy.
I still remain suprised how many people exposed themselves in a period of historically low rates to this.