I see… they need at least 20% equity to get a 30 year fixed. You can’t get a piggyback 20% on a 30 year fixed? And with prices dropping, the equity is not there. With higher rates, they can’t qualify for the payment, since the mortgage they have is already at their maximum payment ability.

If we wanted to conduct a foreclosure prevention campaign, then it wouldn’t be to switch these people to a fixed rate mortgage.

How can we help these people? I had thought of sending flyers to all the people in the lower income areas of Poway, where most foreclosures are occuring, or going to the Poway city council and telling them of the rising foreclosures in Poway, and discussing solutions. But I was wrong to think these people could be taught to refinance to a fixed mortgage.