[quote=5yearwaiter]Is any one else thinking about the new housing bill that gave flex to “whoever in the ARM need to refinance now may get blessed with 87 % of new apprisal value”?. As per this, do you still think the home prices may go down to 2000 level[/quote]

The housing bill is a joke. It’s only a bail out for Fannie and Freddie, and it will do very little in CA. To be able to refinance at a lower rate the banks have to agree to take an additional 10% loss in a market like CA where prices have already dropped 30% or more. Even if the banks will do that the homeowner still has to qualify under 30 year fixed, while actually proving their income. Then when they go to sell up to 50% of their equity goes back to the government.

What do you think people are going to do? They’ll just stop paying and wait for the Sherriff to come knocking.