“ARMs are actually likely to reset lower in the current environment, as the FFR has fallen 325 bps. ”

I thought that too, but my nephew is over 100k upsidedown and able to pay. His mortgage HAS gone up at least 400 a month. He is trying to negociate with his bank to lower the amount owed. He is considering walking. He doesn’t want to though because it will hurt his credit.