Alt-As and ARMS are pointed at coastal areas. Subprime has taken care of the outlying areas and the cancer is spreading inward. Many of these loans recast quicker than 5 or 7 years if the LTV reaches 110-125% In a declining market, that can cause a world of hurt quicker than one might think. Santa Monica, Brentwood, Beverly Hiils, Malibu and many of the affluent areas on the Westside of LA are now in the crosshairs.
I’m sure La Jolla, Coronado, Del Mar and others in San Diego are as well.
