You seem to be conveniently discounting all of the programs that are gaining alot more traction that are intended to keep people in homes.

I don’t disagree with the walk away events happening however I think the effect will not be substantial and it has already been displayed that the govt is more then prepared to deal with the problem. I don’t believe that midlevel 700k homes in 4S or CV will be affected by 1 or 2 million dollar walkaways.

I have been saying over and over that once rates start moving up rapidly we will then see depreciation. I think it will be across the board for the most part as well. Finally the refinance craze has for the most part gobbled up all of the adjustables you are referring to. The programs now in place will for the most part eat up the remainders as there are no more appraisals needed and even underwater homeowners can refi.